"US Tariff Threatens 70,000 Textile Jobs in Indonesia", 10 July 2025

The textile and garment industry is bracing for sharp declines in orders and potential mass layoffs following the United States’ decision to impose a 32 percent import tariff.

Danang Girindrawardana, executive director of the Indonesian Textile Association (API), warned that unless the government successfully negotiates with Washington before the August 1 deadline, the tariff could force domestic producers to slash output and cut jobs to stay afloat. The US accounts for about 40 percent of Indonesia’s textile and garment exports...

Danang estimates that 50,000 to 70,000 workers could lose their jobs if the tariff remains in place, reflecting a severe hit to Indonesia’s labor-intensive manufacturing sector. During the pandemic, nearly 30 textile companies in Indonesia laid off 120,000 workers amid a slowdown in the global economy...

Indonesia’s textiles face an additional disadvantage against competitors like Vietnam, which enjoys a lower US import tariff of around 20 percent...

Danang urged the government to negotiate sector-specific tariff adjustments with the US to minimize damage to the industry...

Indonesia has sent its Chief Economic Affairs Minister, Airlangga Hartarto, to Washington for talks with the US Trade Representative as it seeks to ease trade tensions.

To sweeten the deal, state-owned energy giant Pertamina, through its refining arm Kilang Pertamina Internasional, signed memoranda of understanding this week with ExxonMobil, Chevron, and KDT Global Resources. The agreements are part of Indonesia’s broader plan to deepen engagement with the United States, including potential deals worth up to $34 billion, with $15.5 billion earmarked for energy imports.