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US Import Tariffs Drop, Ministry Of Finance Optimistic Indonesian Economy Will Grow 5% In The Second Half Of 2025

The Ministry of Finance expressed optimism regarding Indonesia's economic prospects in the second half of 2025. 

Director General of Economic and Fiscal Strategy, Febrio Nathan Kacaribu, explained that Trump's tariff reduction from 32% to 19% is seen as a crucial momentum that can strengthen the resilience of national exports and drive economic growth towards the 5% range. 

"With the successful tariff reduction we negotiated from 32% to 19%, we see that in the second half of the year, our exports will be significantly more resilient, so we see the opportunity for economic growth to reach around 5%," Febrio told the media in Jakarta on Monday (July 21). 

He added that in addition to the trade agreement with the US, the success of the IEU-CEPA agreement will also expand trade and investment opportunities. 

"This will bring not only trade but also investment flows to Indonesia from the European Union, so this is the momentum we will use for the second half of 2025," he said. 

Furthermore, Febrio outlined sectors with potential to benefit from this trade momentum. 

For the European market, palm oil exports are cited as one of the key sectors to be boosted following the IEU-CEPA agreement. 

"This agreement has been reached, so we will be able to export more there, and we hope that will be a driving force," he explained. 

Meanwhile, for the United States (US) market, the machinery and electronic equipment sector, particularly routers, will be a mainstay. 

On the other hand, industrial products such as textiles, footwear, and furniture will also benefit significantly from tariff reductions, with exports to the US projected to grow double digits in the second half of 2025. 

Tag: Febrio Nathan Kacaribu US Import Tariffs