automotive

Automotive Component Industry Asks Government To Strengthen Trade Strategy To Face Trump Tariffs

The Association of Automotive and Motorcycle Equipment Industries (GIAMM) expressed concern over the impact of the 32% import tariff policy imposed by the United States on the national automotive component industry. GIAMM Secretary General Rachmat Basuki assessed that the government needed strategic steps to address this situation. Given that Indonesia's automotive component exports to the United States currently rank second largest after Japan. "This certainly has a big impact on our industry, because previously the import tariff to the US was relatively small. Meanwhile, American products entering Indonesia are subject to much higher tariffs," he said in an official statement, Sunday (6/4/2025). GIAMM proposed a reciprocal tariff approach as a fairer short-term solution. 

"If they impose high tariffs, we also need to adjust. Tariffs in return for tariffs. But don't forget other options such as lowering tariffs for US products to create balance," said Basuki. In addition, GIAMM highlighted the potential for a flood of automotive component products from China to the Indonesian market due to America's trade policies towards China. Cheap products from China, especially for aftermarket needs, are feared to weaken the competitiveness of local products. 

As a solution, he encouraged the implementation of non-tariff barriers such as the Domestic Component Level (TKDN) policy and the Indonesian National Standard (SNI) to protect the national industry from the onslaught of imported goods that are not competitive in terms of quality and price. GIAMM invites the government to continue to strengthen trade diplomacy with partner countries and ensure that the national industry receives adequate protection, so that it can continue to grow and contribute to the Indonesian economy. "Despite the challenges, we remain optimistic. The American market is still open. As long as the tariffs imposed on China are not lower than ours, domestic producers still have the opportunity to compete," said Basuki. 

Tag: Automotive GIAMM Indonesian National Standard