Indonesia takes multiple steps to deal with high U.S. tariffs

President Prabowo has planned a series of measures in response to the U.S. import tariff policy, aimed at improving the competitiveness of the country's economy and promoting economic growth.He called for the relaxation of the domestic component ratio (TKDN) requirement, arguing that while the policy is well intentioned, it should not be mandatory if it ultimately squeezes the competitiveness of local products, and that it cannot be relied upon alone to enhance domestic manufacturing capacity. He also instructed that the policy of technical assessment in the import process be abolished, as it is sometimes more stringent than, for example, a presidential decision; abolish quotas for the import of goods, believing that the quota policy is discriminatory, and trusting the public to decide for themselves the amount and timing of imports; and simplify the process of import quarantine, so that if a quarantine has already been carried out in the country of origin, there is no need to quarantine it again in the country. He has previously asked the cabinet to simplify regulatory provisions that hinder domestic trade and eliminate non-tariff trade measures, which he believes will enhance competitiveness, maintain market confidence and attract investment, which in turn will boost national economic growth. Indonesia has communicated with Malaysia, which holds the chairmanship of ASEAN, to take joint action, given that all 10 ASEAN countries are affected by the U.S. tariffs.