Author
Listed:
- Mirah Delima
(Padang State University)
- Asma Wahyuni
(Padang State University)
- Puja Oktovia Yosrianti
(Padang State University)
Abstract
Economic relations between countries are regulated and directed by international economic policies, one of which is international trade relations. However, international trade can be hampered by international economic policies, such as the imposition of import tariffs by US President Donald Trump, which imposed a 32% tariff on Indonesian products. This policy has had a negative impact, particularly on labor-intensive exports and fisheries, and on Indonesia's macroeconomic stability. This study aims to determine the responsiveness of the Indonesian government in addressing the impacts of Trump's import tariff policy. The method used in this study is descriptive qualitative with a literature review approach. The results show that this policy has led to a decline in the volume and competitiveness of Indonesian exports in the US market, decreased production, the risk of layoffs, and the depreciation of the rupiah exchange rate. To address this, the Indonesian government will assess the economic impact and take negotiating steps by sending a delegation to the United States, preparing proposals for bilateral economic cooperation, strengthening regional cooperation with ASEAN countries, diversifying export markets, maintaining monetary stability, providing fiscal incentives, and increasing domestic consumption. This response demonstrates Indonesia's seriousness and responsiveness to the impact of the United States' tariff policy by striving to maintain the resilience and sustainability of the Indonesian economy.
Suggested Citation
Handle:
RePEc:prv:jipesp:1808
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