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ZENODO
Article . 2025
License: CC BY
Data sources: ZENODO
ZENODO
Article . 2025
License: CC BY
Data sources: Datacite
ZENODO
Article . 2025
License: CC BY
Data sources: Datacite
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Reciprocal Tariff Policy and Its Implications for Indonesia’s Economic Performance

Authors: Jan Horas Veryady Purba;

Reciprocal Tariff Policy and Its Implications for Indonesia’s Economic Performance

Abstract

Reciprocal tariff policies implemented by the Trump administration have had significant impacts on Indonesia’s economy, particularly through the imposition of a 32% tariff on Indonesian export products to the United States. This policy reduced the competitiveness of Indonesian goods, decreased export volumes, and pressured strategic sectors such as textiles, footwear, electronics, furniture, and agricultural and plantation commodities. Beyond industrial performance, the policy also affected the domestic market through potential price increases, shifts in consumption patterns, and inflationary pressures. At the macroeconomic level, reciprocal tariffs contributed to slower economic growth, depreciation of the rupiah, increased risks of trade balance deficits, and potential rises in unemployment. On the bilateral front, the policy heightened trade tensions between Indonesia and the United States, although opportunities for cooperation remain open through trade dialogue and strengthened economic collaboration. This experience provides Indonesia with an important lesson on the urgency of export market diversification, improved production efficiency, strengthened trade diplomacy, and the development of infrastructure and human capital. With the right strategies, Indonesia can reinforce its economic resilience and enhance competitiveness in navigating the dynamics of international trade policies.

Related Organizations
Keywords

Reciprocal Tariff; International Trade; Trade Policy; Competitiveness; Economic Growth

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    popularity
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    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green