Enviro News Asia, Jakarta — The President of the United States (US), Donald Trump, has officially announced new import tariffs targeting several trading partner countries, including Indonesia, which has been subjected to a reciprocal tariff of 32%—one of the highest among the affected nations. The Indonesia Pulp and Paper Association (APKI) has highlighted the impact of this tariff policy, particularly on the pulp and paper sector.
APKI Chairperson, Liana Bratasida, stated that the policy has the potential to significantly weaken the competitiveness of Indonesia’s pulp and paper industry. The high tariff will make Indonesian products less competitive in the US market compared to products from other countries. She also pointed out that a decline in exports could directly impact production, employment, and overall industrial growth, thereby threatening the sustainability of jobs created by the industry. Moreover, the policy risks undermining the principles of free and fair trade as regulated by the WTO.
In response to the high US tariff policy, APKI has urged the Indonesian government to take strategic action to protect the domestic industry. This includes strengthening safeguards for the domestic market—particularly against a potential influx of imports from other affected countries that fail to penetrate the US market—maintaining the domestic market as a strategic secondary market, emphasizing the importance of consistency with the Domestic Component Level (TKDN) policy, and considering the possibility of implementing tariff policies on US products, such as imposing 0% tariffs on US manufactured goods due to their relatively lower competitiveness. However, any such tariff policy must comply with WTO regulations.
APKI also emphasized that it is currently conducting a more in-depth internal assessment with its members to evaluate the real impact of the policy on the ground. The association hopes the government will promptly take diplomatic steps to negotiate this tariff policy. APKI is also coordinating with ministries, agencies, and relevant associations at the ASEAN level, with the expectation that the government will initiate further communication with the US through either bilateral or multilateral negotiations.
