BKPM Ensures That US Investments In Indonesia Are Not Affected By The New Trade Tariffs

The Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM) has confirmed that investments from the United States (US) in Indonesia will continue, even though products from that country are not subject to tariffs, meaning they are at 0 percent in the domestic market.

"Yes, it will continue," stated Riyatno, Deputy for Investment Climate Development at the Ministry of Investment and Downstream Industry/BKPM, in Jakarta on Friday.

Riyatno noted that one of the ongoing US investments is the construction of the production facility for AirTag by the American giant, Apple, in Batam.

"We are optimistic that the planned investments will proceed, especially since Minister Rosan Roeslani has mentioned on several occasions that Apple has already purchased land for its investment plans in Batam, and we believe this will continue," he said.

Furthermore, he indicated that BKPM has the responsibility to attract and stimulate investment interest in the country, not only from the United States but also from other nations.

"This means we are continuously striving to attract investments from various countries," he remarked.

The President of the United States, Donald Trump, announced that an import tariff of 19 percent will be imposed on Indonesian products entering the U.S., following direct negotiations he conducted with Indonesian President Prabowo Subianto.

"Indonesia will pay a 19 percent tariff to the United States for all goods imported from them into our country," Trump stated.

This new rate indicates that an agreement has been reached to reduce the U.S. import tariff on Indonesian products from the previously announced figure of 32 percent.

Furthermore, Trump mentioned that Indonesia has committed to eliminating all tariff and non-tariff barriers for U.S. products entering Indonesia.

"If there are products from a third country with a higher tariff that will be exported to the U.S. through Indonesia, the 19 percent tariff will be added to those products," Trump remarked.

Tag: . Import Tariff BKPM Riyatno