Indah Ayu Pujiastuti, Jakarta – US tariff uncertainties still haunt the Indonesian footwear industry as businesses keep their fingers crossed for lower trade.
Indonesian footwear entering the US market is currently subject to the 10% global tariff, a stopgap levy that US President Donald Trump rolled out after legal setbacks. These tariffs will expire on July 24. The next round of tariffs will depend on the ongoing Section 301 probes. The Trump administration has proposed a 10% tariff over a forced labor probe. They have not released the tariff rate for the other investigation on excess capacity.
Indonesian Footwear Association (Aprisindo) chair Anton J. Supit admitted that they were still waiting for the probes. Aprisindo secretary-general Yoseph Billie Dosiwoda said he hoped the government would engage in diplomacy to bring down tariffs lower than competing countries "to maintain or increase orders from buyers".
"If Indonesia's tariffs are the same or even lower than those of competing countries, that will be a problem. Our competitiveness could decline, potentially impacting buyer demand," he said.
According to Billie, the price of raw materials supplied by vendors and suppliers has recently jumped by around 30 to 40%, which he attributed to the falling rupiah. This situation adds to the burden on the footwear sector, which is one of the largest labor-intensive industries in Indonesia.
Anton emphasized that exchange rate stability is far more important than simply a high or low exchange rate. Certainty about currency movements will help companies formulate business plans, determine export prices, and manage raw material needs more accurately. He went on to say each company has made adjustments to its business conditions and cost structure.
Billie acknowledged that industry conditions in the first quarter of 2026 will still be quite challenging. Businesses are currently evaluating export developments in the coming months before taking further efficiency measures. Aprisindo emphasized that layoffs are not a desirable option for the industry and will only be a last resort if business pressures worsen.
Source: https://jakartaglobe.id/business/us-tariff-uncertainties-haunt-indonesias-footwear-industr