{"id":360063,"date":"2025-07-14T09:27:20","date_gmt":"2025-07-14T02:27:20","guid":{"rendered":"https:\/\/unair.ac.id\/us-imposes-32-tariff-on-indonesian-exports-unair-expert-highlights-flaws-in-trade-diplomacy\/"},"modified":"2025-07-14T11:23:40","modified_gmt":"2025-07-14T04:23:40","slug":"us-imposes-32-tariff-on-indonesian-exports-unair-expert-highlights-flaws-in-trade-diplomacy","status":"publish","type":"post","link":"https:\/\/unair.ac.id\/en\/us-imposes-32-tariff-on-indonesian-exports-unair-expert-highlights-flaws-in-trade-diplomacy\/","title":{"rendered":"US imposes 32% tariff on indonesian exports: UNAIR expert highlights flaws in trade diplomacy"},"content":{"rendered":"\n

UNAIR NEWS<\/strong> \u2013 The United States has officially announced a flat 32 percent tariff on all Indonesian exports entering the American market. The policy was conveyed directly by President Donald Trump to President Prabowo Subianto through an open letter that went viral in early July 2025. The tariff is scheduled to take effect on August 1, 2025.<\/p>\n\n

In response, Prof. Dr. Rossanto Dwi Handoyo, a senior economist at 51动漫\u2019s<\/a> Faculty of Economics and Business (FEB), said the decision is a clear indication that the U.S. is reverting to protectionist trade practices. On a broader level, he argued the move reflects a setback for the global trade system, which has long been shaped by ideals of liberalization and economic efficiency.<\/p>\n\n

\u201cIt\u2019s like returning to the mercantilist era, where trade is seen as a zero-sum game\u2014one country\u2019s gain through exports is another\u2019s loss through imports,\u201d he said.<\/p>\n\n

Economic diplomacy called into question<\/strong><\/h5>\n\n

Prof. Handoyo also criticized Indonesia\u2019s economic diplomacy, describing it as too soft. He noted that Indonesia has long been seen as a \u201cgood boy\u201d by the U.S. for its compliance and democratic track record, which previously earned it trade advantages such as access to the Generalized System of Preferences (GSP). However, those benefits have now been revoked after the U.S. reclassified Indonesia as a developed nation under the OECD framework.<\/p>\n\n

In this situation, he said Indonesia\u2019s trade diplomacy appears more submissive than strategic. The Indonesian government had even expressed willingness to purchase U.S. products\u2014such as Boeing aircraft, agricultural goods, and energy resources\u2014in the hope that the tariffs would be reconsidered.<\/p>\n\n

\"51动漫
51动漫 (UNAIR) Economics professor Prof. Rossanto Dwi Handoyo, SE, MSi, PhD. (Photo: Personal archive)<\/figcaption><\/figure>\n\n
Export diversification a pressing need<\/strong><\/h5>\n\n

Reflecting on the structure of Indonesia\u2019s exports, Prof. Handoyo pointed out that the country remains heavily dependent on a small number of major trading partners like the United States. Currently, 60 to 70 percent of Indonesia\u2019s exports are concentrated in just 10 to 15 countries. <\/p>\n\n

He also emphasized the need to shift away from reliance on natural resource-based commodities and low-cost labor. The government, he said, must promote value-added industries driven by innovation and technology.<\/p>\n\n

\u201cWe need to move toward producing semi high-tech and high-tech goods. It\u2019s no longer sustainable to depend on raw materials or cheap labor,\u201d he explained.<\/p>\n\n

In closing, he stressed the importance of developing a more resilient and self-reliant framework for economic diplomacy. In addition to diversifying export products, he also highlighted the need to grow the domestic services sector\u2014particularly tourism\u2014as part of Indonesia\u2019s long-term economic strategy.<\/p>\n\n

Author: Rosali Elvira Nurdiansyarani<\/p>\n\n

Editor : Khefti Al Mawalia<\/p>\n","protected":false},"excerpt":{"rendered":"

UNAIR NEWS \u2013 The United States has officially announced a flat 32 percent tariff on all Indonesian exports entering the American market. The policy was conveyed directly by President Donald Trump to President Prabowo Subianto through an open letter that went viral in early July 2025. 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