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Kuwait Times
11 hours ago
- Business
- Kuwait Times
Indonesian shoemakers fear Trump tariffs despite lower levy
At a leather boot shop in the Indonesian city of Bandung, workers handle an order from Texas but owner Etnawati Melani says she fears such business will dwindle when Donald Trump's tariffs hit exports. The United States is Indonesia's biggest market for footwear exports and the American president announced Tuesday he would impose a 19 percent tariff on Southeast Asia's biggest economy. The measure was lower than the initial extra 32 percent Trump threatened in April, and better than the 20 percent he imposed on Vietnam. But Etnawati, who had plans to expand her business to the United States, said her focus would now shift to other markets. 'I have to develop a new strategy. Perhaps we have to diversify our markets, products, and so on. If it's possible to enter (the US market), but... not in large quantities at first, that's it,' she told AFP. 'We can't rely solely on the US. There's still many markets in the world. We can still shift. 'I plan to shift focus to Japan and Russian partners.' In return for a lower tariff, Indonesia pledged billions to increase energy, agriculture and merchandise imports from the United States and Trump said Jakarta had pledged to buy 50 Boeing jets. It remains unclear when the new tariff rate Trump announced will come into effect and reaction from Indonesian officials has been muted while President Prabowo Subianto travels home from a Europe visit. But chief negotiator Airlangga Hartarto, after meeting top US officials in Washington, said last week that the talks had been 'positive'. Prabowo suggested after the initial tariff threat in April that Trump was maybe helping Jakarta by causing it to re-think its trade surplus with the world's top economy. Data from the US Trade Representative office shows Washington's goods trade deficit with Indonesia was $17.9 billion in 2024, up 5.4 percent from the year before. An artisan works on a pair of leather boots for the US market at the workshop of Tegep Boots. An artisan works on a pair of leather boots for the US market at the workshop of Tegep Boots. Leather boots and other products are displayed at the showroom of Tegep Boots. An artisan works on a pair of leather boots at the workshop of Tegep Boots. An artisan works on a pair of leather boots at the workshop of Tegep Boots. Artisans work on a pair of leather boots for the US market at the workshop of Tegep Boots. Etnawati Melani, the owner and designer of Tegep Boots, a popular Indonesian handmade leather boots maker with many dedicated customers in the United States and Europe, poses at the shop's showroom in Bandung, West Java.--AFP photos 'I'm worried' Indonesia is the third-largest footwear exporter to the US behind China and Vietnam, according to the Observatory of Economic Complexity. So any new tariff was likely to damage business - particularly in Bandung, where its shoe scene is well-known internationally for beautifully hand-crafted quality leather boots. Economists in Indonesia hit out at the deal with Washington, which Trump says would get tariff-free access in return. 'This is not an agreement. It's... a one-sided agreement,' Jakarta-based Centre for Strategic and International Studies (CSIS) executive director Yose Rizal Damuri told AFP on Wednesday. But he predicted American consumers would likely bear the costs more than Indonesian businesses, with Trump's tariffs sweeping across many countries. 'The United States itself will be the one more affected. Prices will rise,' he said. Data on Tuesday showed US inflation spiked in June as the tolls kicked on. The shop's more seasoned workers such as Jajang - who goes by one name - have already experienced the ups and downs of business, with the Covid-19 pandemic hitting sales, and seeing dozens of colleagues laid off and several dying. 'I don't know about that issue, the important thing is that I work here,' said the 53-year-old when asked about Trump's levies. Others aware of the Trump threat to Indonesian exports were more concerned. One of Etnawati's workers, Lili Suja'i, chipped away at a new set of boots for the three-pair Texan order - riding boots, medium casual boots and loafers - in a workshop adjacent to the store. He said he feared US customers would be put off by higher costs, with the shop his main income for his family of three. But the shoemakers are ready to fulfil any orders from Americans willing to pay the extra price. 'I'm worried, yes, but before placing an order, we negotiate the shipping costs and prices with the customer,' the 38-year-old said. 'So, we've already made a deal. If they're OK with it, we'll do it.' — AFP
Kuwait Times
3 days ago
- Business
- Kuwait Times
Indonesia hails ‘new era' with US after Trump trade pact
Trump slashes tariffs from 32% to 19% after trade deal JAKARTA: Indonesia's president on Wednesday hailed a 'new era' of trade relations with the United States, after Donald Trump said he would slash tariffs faced by Southeast Asia's biggest economy from 32 percent to 19 percent. The Trump administration has been under pressure to wrap up trade pacts after promising a flurry of deals, as countries sought talks with Washington to avoid the US president's threatened tariffs ahead of an August 1 deadline. 'I had a very good call with President Donald Trump. Together, we agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit,' President Prabowo Subianto wrote on Instagram. Prabowo confirmed the new tariff rate after landing back in Indonesia from Europe. 'We agreed... the tariffs to be lowered from 32 (percent) to 19 (percent),' he told reporters, adding he could visit Washington in September or October. Prabowo, a populist former general, posted pictures of himself laughing on the phone with Trump, but did not give any specifics about their trade deal. Prabowo's presidential spokesperson confirmed the 19 percent rate and said it was struck after direct negotiations. 'It is an extraordinary negotiation conducted directly by our president with President Donald Trump,' spokesperson Hasan Nasbi said, adding that the deal was 'progress that cannot be called small'. Trump said the rate reduction was in return for significant purchase commitments from Jakarta, including a pledge to buy 50 Boeing jets. Indonesia has committed to spending billions to increase energy, agriculture and merchandise imports from the United States. Trump and Prabowo have developed a warm relationship since the US leader first clinched the presidency in 2016. Washington invited then-defence minister Prabowo to visit in 2020, lifting a de facto visa ban, which had been in effect over alleged crimes committed during the reign of Indonesia's late dictator Suharto. Significant risk After Trump announced the tariffs in April, Prabowo sent his top economic minister to Washington, and also suggested that Trump was maybe helping Jakarta by causing it to rethink its trade surplus with the world's top economy. Data from the US Trade Representative office shows Washington's goods trade deficit with Indonesia was $17.9 billion in 2024, up 5.4 percent from the year before. The deal struck with Indonesia would be slightly better than the 20 percent given to Southeast Asian neighbor Vietnam. Both Indonesia and Vietnam are key markets for the shipment of Chinese goods. Trump said the deal with Indonesia would include a penalty for goods transiting Indonesia from China. But experts said the Indonesia pact appeared one-sided. 'The 19 percent tariff on Indonesian exports to the US, while the US can enjoy 0 percent, actually poses a significant risk to Indonesia's trade balance,' said Bhima Yudhistira Adhinegara, executive director of the Center of Economic and Law Studies. 'Do not be too reliant on exports to the US, because the result of the tariff negotiation is still detrimental to Indonesia's position.' — AFP
eNCA
3 days ago
- Business
- eNCA
Indonesian shoemakers fear Trump tariffs despite lower levy
At a leather boot shop in the Indonesian city of Bandung, workers handle an order from Texas but owner Etnawati Melani says she fears such business will dwindle when Donald Trump's tariffs hit exports. The United States is Indonesia's biggest market for footwear exports and the American president announced Tuesday he would impose a 19 percent tariff on Southeast Asia's biggest economy. The measure was lower than the initial extra 32 percent Trump threatened in April, and better than the 20 percent he imposed on Vietnam. But Etnawati, who had plans to expand her business to the United States, said her focus would now shift to other markets. AFP | Timur MATAHARI "I have to develop a new strategy. Perhaps we have to diversify our markets, products, and so on. If it's possible to enter (the US market), but... not in large quantities at first, that's it," she told AFP. "We can't rely solely on the US. There's still many markets in the world. We can still shift. "I plan to shift focus to Japan and Russian partners." In return for a lower tariff, Indonesia pledged billions to increase energy, agriculture and merchandise imports from the United States and Trump said Jakarta had pledged to buy 50 Boeing jets. It remains unclear when the new tariff rate Trump announced will come into effect and reaction from Indonesian officials has been muted while President Prabowo Subianto travels home from a Europe visit. AFP | Timur MATAHARI But chief negotiator Airlangga Hartarto, after meeting top US officials in Washington, said last week that the talks had been "positive". Prabowo suggested after the initial tariff threat in April that Trump was maybe helping Jakarta by causing it to re-think its trade surplus with the world's top economy. Data from the US Trade Representative office shows Washington's goods trade deficit with Indonesia was $17.9 billion in 2024, up 5.4 percent from the year before. - 'I'm worried' - Indonesia is the third-largest footwear exporter to the US behind China and Vietnam, according to the Observatory of Economic Complexity. So any new tariff was likely to damage business -- particularly in Bandung, where its shoe scene is well-known internationally for beautifully hand-crafted quality leather boots. AFP | Timur MATAHARI Economists in Indonesia hit out at the deal with Washington, which Trump says would get tariff-free access in return. "This is not an agreement. It's... a one-sided agreement," Jakarta-based Centre for Strategic and International Studies (CSIS) executive director Yose Rizal Damuri told AFP on Wednesday. But he predicted American consumers would likely bear the costs more than Indonesian businesses, with Trump's tariffs sweeping across many countries. "The United States itself will be the one more affected. Prices will rise," he said. Data on Tuesday showed US inflation spiked in June as the tolls kicked on. The shop's more seasoned workers such as Jajang -- who goes by one name -- have already experienced the ups and downs of business, with the Covid-19 pandemic hitting sales, and seeing dozens of colleagues laid off and several dying. "I don't know about that issue, the important thing is that I work here," said the 53-year-old when asked about Trump's levies. Others aware of the Trump threat to Indonesian exports were more concerned. One of Etnawati's workers, Lili Suja'i, chipped away at a new set of boots for the three-pair Texan order -- riding boots, medium casual boots and loafers -- in a workshop adjacent to the store. He said he feared US customers would be put off by higher costs, with the shop his main income for his family of three. But the shoemakers are ready to fulfil any orders from Americans willing to pay the extra price. "I'm worried, yes, but before placing an order, we negotiate the shipping costs and prices with the customer," the 38-year-old said. "So, we've already made a deal. If they're OK with it, we'll do it." By Yuli Krisna
Borneo Post
4 days ago
- Business
- Borneo Post
Indonesia hails 'new era' with US after Trump trade pact
Prabowo confirmed the new tariff rate after landing back in Indonesia from Europe. – AFP photo JAKARTA (July 16): Indonesia's president on Wednesday hailed a 'new era' of trade relations with the United States, after Donald Trump said he would slash tariffs faced by Southeast Asia's biggest economy from 32 per cent to 19 per cent. The Trump administration has been under pressure to wrap up trade pacts after promising a flurry of deals, as countries sought talks with Washington to avoid the US president's threatened tariffs ahead of an August 1 deadline. 'I had a very good call with President Donald Trump. Together, we agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit,' President Prabowo Subianto wrote on Instagram. Prabowo confirmed the new tariff rate after landing back in Indonesia from Europe. 'We agreed… the tariffs to be lowered from 32 (per cent) to 19 (per cent),' he told reporters, adding he could visit Washington in September or October. Prabowo, a populist former general, posted pictures of himself laughing on the phone with Trump, but did not give any specifics about their trade deal. Prabowo's presidential spokesperson confirmed the 19 per cent rate and said it was struck after direct negotiations. 'It is an extraordinary negotiation conducted directly by our president with President Donald Trump,' spokesperson Hasan Nasbi said, adding that the deal was 'progress that cannot be called small'. Trump said the rate reduction was in return for significant purchase commitments from Jakarta, including a pledge to buy 50 Boeing jets. Indonesia has committed to spending billions to increase energy, agriculture and merchandise imports from the United States. Trump and Prabowo have developed a warm relationship since the US leader first clinched the presidency in 2016. Washington invited then-defence minister Prabowo to visit in 2020, lifting a de facto visa ban, which had been in effect over alleged crimes committed during the reign of Indonesia's late dictator Suharto. 'Significant risk' After Trump announced the tariffs in April, Prabowo sent his top economic minister to Washington, and also suggested that Trump was maybe helping Jakarta by causing it to rethink its trade surplus with the world's top economy. Data from the US Trade Representative office shows Washington's goods trade deficit with Indonesia was US$17.9 billion in 2024, up 5.4 per cent from the year before. The deal struck with Indonesia would be slightly better than the 20 per cent given to Southeast Asian neighbour Vietnam. Both Indonesia and Vietnam are key markets for the shipment of Chinese goods. Trump said the deal with Indonesia would include a penalty for goods transiting Indonesia from China. But experts said the Indonesia pact appeared one-sided. 'The 19 per cent tariff on Indonesian exports to the US, while the US can enjoy 0 per cent, actually poses a significant risk to Indonesia's trade balance,' said Bhima Yudhistira Adhinegara, executive director of the Center of Economic and Law Studies. 'Do not be too reliant on exports to the US, because the result of the tariff negotiation is still detrimental to Indonesia's position.' – AFP donald trump indonesia Prabowo Subianto tariff us
Business Times
4 days ago
- Business
- Business Times
Indonesian shoemakers fear Trump tariffs despite lower levy
[BANDUNG] At a leather boot shop in the Indonesian city of Bandung, workers handle an order from Texas but owner Etnawati Melani says she fears such business will dwindle when Donald Trump's tariffs hit exports. The United States is Indonesia's biggest market for footwear exports and the American president announced on Tuesday (Jul 15) he would impose 19 per cent tolls on top of a baseline 10 per cent for South-east Asia's biggest economy. The measure was lower than the initial extra 32 per cent Trump threatened in April, and better than the 20 per cent he imposed on Vietnam. But Etnawati, who had plans to expand her business to the United States, said her focus would now shift to other markets. 'I have to develop a new strategy. Perhaps we have to diversify our markets, products, and so on. If it's possible to enter (the US market), but... not in large quantities at first, that's it,' she told AFP. 'We can't rely solely on the US. There's still many markets in the world. We can still shift. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up 'I plan to shift focus to Japan and Russian partners.' In return for a lower tariff, Indonesia pledged billions to increase energy, agriculture and merchandise imports from the US and Trump said Jakarta had pledged to buy 50 Boeing jets. It remains unclear when the new tariff rate Trump announced will come into effect and reaction from Indonesian officials has been muted while President Prabowo Subianto travels home from a Europe visit. But chief negotiator Airlangga Hartarto, after meeting top US officials in Washington, said last week that the talks had been 'positive'. Prabowo suggested after the initial tariff threat in April that Trump was maybe helping Jakarta by causing it to re-think its trade surplus with the world's top economy. Data from the US Trade Representative office shows Washington's goods trade deficit with Indonesia was US$17.9 billion in 2024, up 5.4 per cent from the year before. Indonesia is the third-largest footwear exporter to the US behind China and Vietnam, according to the Observatory of Economic Complexity. So any new tariff was likely to damage business – particularly in Bandung, where its shoe scene is well-known internationally for beautifully hand-crafted quality leather boots. Economists in Indonesia hit out at the deal with Washington, which Trump says would get tariff-free access in return. 'This is not an agreement. It's... a one-sided agreement,' Jakarta-based Centre for Strategic and International Studies (CSIS) executive director Yose Rizal Damuri told AFP on Wednesday. But he predicted American consumers would likely bear the costs more than Indonesian businesses, with Trump's tariffs sweeping across many countries. 'The United States itself will be the one more affected. Prices will rise,' he said. Data on Tuesday showed US inflation spiked in June as the tolls kicked on. The shop's more seasoned workers such as Jajang – who goes by one name – have already experienced the ups and downs of business, with the Covid-19 pandemic hitting sales, and seeing dozens of colleagues laid off and several dying. 'I don't know about that issue, the important thing is that I work here,' said the 53-year-old when asked about Trump's levies. Others aware of the Trump threat to Indonesian exports were more concerned. One of Etnawati's workers, Lili Suja'i, chipped away at a new set of boots for the three-pair Texan order – riding boots, medium casual boots and loafers – in a workshop adjacent to the store. He said he feared US customers would be put off by higher costs, with the shop his main income for his family of three. But the shoemakers are ready to fulfil any orders from Americans willing to pay the extra price. 'I'm worried, yes, but before placing an order, we negotiate the shipping costs and prices with the customer,' the 38-year-old said. 'So, we've already made a deal. If they're OK with it, we'll do it.' AFP
