Alfi Dinilhaq, Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin) has urged the government to thoroughly review and clarify five domestic policies that the United States claims are harmful to American interests, prompting Washington to impose a 32 percent tariff on Indonesian goods.
The five contested policies were outlined in the 2025 National Trade Estimate (NTE) report released by the Office of the United States Trade Representative (USTR).
"These policies must be comprehensively reviewed. The government needs to verify the validity of the claims and assess their potential impact on Indonesia – US trade relations," Kadin Chairman Anindya Novyan Bakrie said in a statement on Saturday.
The policies under US scrutiny include:
Import tariff regulation for delivered goods: The US raised concerns over Finance Ministry Regulation (PMK) No. 199/2019, which was later revised by PMK No. 96/2023. Washington claims the regulation hinders US goods from entering the Indonesian market. The updated regulation mandates partnerships between high-volume e-commerce importers and Indonesian customs, classifies platforms as importers, expands MFN tariff coverage, and introduces export provisions aimed at supporting cross-border MSME trade.
Complex tax assessment procedures: The USTR criticized Indonesia's Directorate General of Taxes (DJP) for operating a complicated and opaque audit process, imposing excessive fines for administrative errors, and maintaining a dispute resolution system that lacks clear legal precedent.
Income tax on imported goods: PMK No. 41/2022 expanded the scope of imported goods subject to Article 22 Income Tax. US companies have voiced concern over the lengthy and uncertain process of claiming tax refunds for overpayments.
Higher excise duties on imported alcoholic beverages: Imported alcoholic beverages reportedly face significantly higher excise duties than domestic products. The difference is as high as 24 percent for beverages with 5 to 20 percent alcohol content, and up to 52 percent for those with 20 to 55 percent alcohol.
Revision of the commodity balance regulation: The US objected to Presidential Regulation No. 61/2024, which expanded the list of commodities requiring import licenses from five strategic items to 19. The list includes garlic in 2025, and apples, grapes, and oranges by 2026.
Anindya said Indonesia should respond constructively and avoid any misinterpretation that could harm bilateral relations.
"The government must present a clear, data-driven position supported by strong arguments. Kadin supports forming a dedicated team for clarification and direct negotiations in response to the USTR report," he said.
He also warned that the 32 percent tariff could jeopardize Indonesia's trade surplus and hinder broader economic cooperation between the two nations.
"We cannot remain silent in the face of unilateral accusations. But we must also avoid overreacting. A measured and diplomatic response remains the best course," Anindya added.
Kadin pledged to support Indonesia's economic diplomacy efforts through established channels such as the US Chamber of Commerce and AmCham Indonesia.
The new tariff, imposed by US President Donald Trump, marks a sharp increase from the standard 10 percent applied to many other countries.
According to the White House, the elevated tariffs target countries with which the US has the largest trade deficits. In 2024, Indonesia recorded a trade surplus of $16.84 billion with the US – its largest with any trading partner – followed by India ($15.39 billion), the Philippines ($8.85 billion), Malaysia ($4.13 billion), and Japan ($3.71 billion).