(7 Aug 2025)
RESTRICTION SUMMARY:
ASSOCIATED PRESS
Jakarta, Indonesia – 6 August 2025
1. Close of a container being clamped
2. Wide of the container lifted from the truck using a clamp device
3. Wide of the container being lowered onto a ship at Tanjung Priok container terminal
4. Pan from the reflection in the glass to Fithra Faisal Hastiadi, the spokesperson on economic issues at the Presidential Communication Office
5. Close of Embroidery on Hastiadi’s shirt reads "President Communication Office."
6. SOUNDBITE (Indonesian) Fithra Faisal Hastiadi, spokesperson on economic issues at the Presidential Communication Office:
"Besides competing with Vietnam, we also compete with India, Bangladesh, Sri Lanka, which generally have much higher tariffs, so this becomes one of our competitive advantages in the short term."
7. Various of Ahmad Heri Firdaus walking into a library, picking up a book, and reading it
8. SOUNDBITE (Indonesian) Ahmad Heri Firdaus, researcher at the Institute for Development of Economics and Finance (INDEF):
"Although the tariffs imposed on Indonesia are lower, based on our calculations, Indonesia’s export decline to America is actually greater compared to other competing countries."
9. Books
10. SOUNDBITE (Indonesian): Ahmad Heri Firdaus, researcher at the Institute for Development of Economics and Finance (INDEF):
"Our products will find it difficult to be competitive, especially with the tariff increase to 19%, while Vietnam, Malaysia, and other competitors are relatively more cost-efficient in production. Even with higher tariffs, they can still compete in the US market."
11. Various of a container being lifted from a truck and arranged in a stacking area, waiting for the export schedule
STORYLINE:
An Indonesian government spokesperson remained optimistic on Thursday about the country’s exports to the U.S. market despite a 19% tariffs coming into effect earlier in the day.
Fithra Faisal Hastiadi, the spokesperson on economic issues at the Presidential Communication Office, said that "besides competing with Vietnam, we also compete with India, Bangladesh, Sri Lanka, which generally have much higher tariffs, so this becomes one of our competitive advantages in the short term."
The U.S. is a key market for Indonesia’s apparel and footwear with significant exports. In 2023, apparel exports (both knit and non-knit) totaled over $4.36 billion, while footwear exports reached $1.92 billion.
“We believe we will remain competitive," spokesperson Fithra Faisal Hastiadi said.
However, a researcher at the Institute for Development of Economics and Finance, Ahmad Heri Firdaus, said Indonesia remains a capital-intensive country.
That means production costs are higher than those of its competitors, leading to higher selling prices, especially with the additional 19% tariff.
"Although the tariffs imposed on Indonesia are lower, based on our calculations, Indonesia’s export decline to America is actually greater compared to other competing countries," Firdaus said.
He warned that declining demand in the American market would lead to a decline in production and growth, resulting in layoffs in industries that are major exporters to the U.S. such as apparel, footwear, machinery and electrical equipment.
AP video shot by Fadlan Syam
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