Indonesia Poised to Gain IDR27 trillion from US Tariffs on Chinese Goods

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Rabu, 26 Maret 2025 - 17:00 WIB

Jakarta, VIVA – The Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, stated that the escalation of the trade war between the United States (US) and several trade-surplus countries—including Canada, Mexico, and China—will create global uncertainty.

However, Bakrie remains optimistic, believing that this situation will open strategic opportunities for Indonesia to expand its exports and tap into new potential markets.

A recent study conducted by the Kadin Indonesia Institute, the Berbakti Semangat Indonesia Foundation (YBSI), and Datawheel revealed that the tariff policies imposed by Donald Trump on Chinese products could drive Indonesia’s exports up by as much as $1.69 billion or around IDR 27 trillion.

"Several sectors projected to benefit from these import tariffs include footwear, textiles, electronics, and light furniture," Bakrie said on Tuesday (March 25).

Meanwhile, Datawheel’s principal researcher and founder, Professor César Hidalgo, stated that the new US tariffs—ranging from 10% to 20%—on Chinese products in 2025 have created a strategic opportunity for Indonesia to boost its exports.

"The textile, garment, and footwear sectors are expected to see a surge of up to $732 million. Meanwhile, electronics and furniture are also poised to gain significantly due to shifts in global supply chains," Hidalgo remarked.

With many companies seeking supply chain alternatives outside of China, Indonesia is predicted to be one of the six countries that stand to benefit the most.

Indonesia’s export growth to the US is expected to surpass that of Malaysia, Thailand, and the Philippines, thanks to its competitive manufacturing industry and government policies promoting investment and exports.

"However, this increase is still lower than the export growth that Vietnam is projected to achieve," he concluded.