The newly imposed 32 percent tariffs by the United States on Indonesian imports are expected to significantly impact Indonesia’s automotive and electronics exports. Between 2019 and 2023, these sectors recorded an average annual growth of 11 percent, including the US market. Bhima Yudhistira, executive director of Celios (Center of Economics and Law Studies), warned that these tariffs could begin to affect Indonesia’s economic growth as early as the fourth quarter of this year. He noted that the additional import taxes would raise the cost of Indonesian vehicles in the US market, reducing consumer demand and export volumes. Bhima also highlighted challenges for automotive manufacturers in redirecting products to the domestic market due to differences in specifications. The immediate consequences could include reduced production capacity and layoffs. It is projected that for every 1 percentage point decline in US economic growth, Indonesia’s GDP could slow by 0.08 percentage points. He warned that many US brands might cut orders from their Indonesian factories, while the domestic market could be flooded with surplus products from Vietnam, Cambodia, and China.Source: https://jakartaglobe.id/business/us-tariffs-to-hit-indonesian-auto-and-electronics-exports  (ICE GIACARTA)

Fonte notizia: Jakarta Globe,3 April 2025