TEMPO.CO, Jakarta - Agricultural observer Syaiful Bahari has responded to the United States' new 19 percent reciprocal tariff on Indonesian products, noting that U.S. goods, conversely, will enter Indonesia duty-free.
U.S. President Donald Trump stated that Indonesia will purchase several American products, including agricultural goods. Syaiful stressed the importance of first examining the specific types of agricultural products to be imported from the U.S.
"Agricultural commodities or processed agricultural products that cannot be efficiently produced domestically, or that Indonesia is currently unable to produce independently, should indeed be opened up," Syaiful told Tempo on Wednesday, July 16, 2025.
According to him, this policy will not negatively affect Indonesian farmers, provided the imported products are those that domestic farmers cannot independently produce.
"However, if the tariff exemption applies to imported agricultural commodities, most of which are grown by Indonesian farmers, such as rice, corn, and legumes, then these need to be protected by the government," he cautioned.
Syaiful further explained that if restrictions are tightened on importing commodities that cannot be produced domestically, it would adversely impact both industry and consumers, as final product prices would increase.
He advised the government to carefully consider the opportunities and challenges presented by this reciprocal tariff policy. For Indonesia, Syaiful believes the opportunity lies in expanding the export of tropical agricultural commodities to America.
"However, our commodities must be able to compete effectively with those from Vietnam, Thailand, and neighboring countries in the Americas," Syaiful added.
Rafiif Nur Tahta Bagaskara contributed to the report.
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