Buildings in Jakarta, Indonesia, June 5, 2024. Photo by AFP
Roughly 50,000 Indonesian workers could lose their jobs due to new US tariffs, warned Said Iqbal, president of the Indonesian Labour Unions Confederation (KPSI).
Following to warning, Indonesian President Prabowo has instructed cabinet members to urgently explore employment measures to deal with the issue.
The Indonesian government is assessing the potential impact of U.S. tariffs on domestic labor-intensive industries, particularly textiles and shrimp processing.
Mari Elka Pangestu, Vice Chair of Indonesia’s National Economic Council (DEN), said on Friday that it remains uncertain what will unfold in the next 30-60 days as negotiations with the U.S. are still underway.
According to Pangestu, the government has formulated several initiatives to mitigate the adverse effects of the 32% tariff on Indonesian exports.
These include the establishment of a task force dedicated to addressing layoff-related issues.Additionally, the Indonesian government plans simplify regulations to attract more foreign investment, including from U.S. businesses.
On April 2, U.S. President Donald Trump revealed a list of new, higher tariffs on products from various countries.
However, a week later, he announced a postponement for most countries, including Indonesia, opening room for negotiations.
