Bisnis.com, JAKARTA — Reciprocal tariffs set by US President Donald Trump against Indonesia has trapped the nation in a dilemma, forcing the government to find a compromise between facing the tariffs head-on, or negotiating the tariffs away by conceding several points and relaxing policies important to Indonesia’s local economy.
As situation stands, Trump has slammed 32% reciprocal tariffs on Indonesia’s exports going into the US. While Indonesia is heading off to start negotiations to relax this tariff, one of Trump’s qualms with Indonesia is its import quotas and local content requirements—both of which are key policies that aim to protect local businesses and reduce import dependence. In other words, Indonesia may need to relax these policies in order to have the US ease its tariffs.
