Indonesia’s footwear and textile sectors are raising alarm over the newly announced import duties by the United States, citing serious risks for local businesses—particularly small and medium-sized enterprises (SMEs), Tempo reported.

The United States, under President Donald Trump, has introduced a reciprocal tariff policy affecting several countries, including Indonesia, which now faces a 32% duty. Industry figures warn this could result in a wave of foreign products—mainly from China—entering the Indonesian market at competitive prices, overwhelming local producers.

David Chalik, who leads the Indonesian Footwear Entrepreneurs Association (Hipan), expressed concern that these developments could further strain domestic manufacturers already struggling with inexpensive Chinese imports. Speaking after an economic coordination meeting in Jakarta on April 7 2025, Chalik pressed for proactive action to protect local industries.

The meeting, led by Coordinating Minister for Economic Affairs Airlangga Hartarto, gathered government officials and business groups to strategise responses to the US tariffs and broader trade negotiations. Chalik stressed the need for swift intervention to shield both export-driven and domestic-focused companies, many of which lack the scale to absorb such market shocks.

Meanwhile, Febrio Kacaribu, Head of the Fiscal Policy Agency at the Ministry of Finance, assured stakeholders that the government has protective mechanisms in place. These include Safeguard Import Duties and Anti-Dumping Import Duties, which can be deployed if unfair trading practices are identified. Kacaribu reiterated that the Ministries of Trade and Finance stand ready to activate these tools should the need arise.