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Is Indonesia losing ground in the lucrative US market?

12 Jan '26
17 min read
 Is Indonesia losing ground in the lucrative US market?
Pic: Shutterstock

Insights

  • As Indonesia's textiles face the full ***** per cent US tariff while competitor countries like Vietnam, Thailand, Malaysia and Cambodia secure deals giving selected garments duty-free US access, Indonesia is in for some tough times. According to industry insiders, higher production and logistics costs, combined with tariffs, will make Indonesian apparel uncompetitive.

The Indonesian textile and garment industry has been handed an uncomfortable reality check, and it comes straight from the top. Coordinating Minister for Economic Affairs Airlangga Hartarto has reportedly confirmed recently that Indonesian textile products will not be spared from US tariffs, shutting the door on hopes that garments might sneak onto Washington’s exemption list.

Jakarta has floated several flagship commodities for relief from the ** per cent duties, but the fine print is brutal: only “natural resources” qualify, even as Airlangga pointedly noted manufactured products do not count as gifts from nature.

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