Economists say urgent need to appoint ambassador to negotiate US tariff rules

Economists say urgent need to appoint ambassador to negotiate US tariff rules


Jakarta - The Institute for Development of Economics and Finance stated that the government needs to immediately appoint an Indonesian ambassador to the United States , so that it can bridge negotiations regarding President Donald Trump's latest import tariff policy.

Head of the Indef Center for Industry, Trade, and Investment Andry Satrio Nugroho said that a professional and experienced figure is needed for this position because it is important to fight for national interests.

"We need someone who understands economic diplomacy and is experienced in trade lobbying. This is not a symbolic position, this is the front line of Indonesia's trade defense," he said in Jakarta on Thursday.

He also highlighted the position of Indonesian Ambassador to the US which has been vacant for almost two years, after Rosan Roeslani completed his duties on July 17, 2023 after being appointed as Deputy Minister of State-Owned Enterprises (BUMN).

"We have not had a representative in Washington for almost two years, even though the United States is our second largest trading partner. This is not just negligence, but a disregard for national interests," Andry said.

He stated that the government needs to immediately appoint ambassadors who have a strong track record in trade and investment.

"Every day without representation in the United States is a day that our bargaining position is weakened. We lose momentum, we lose opportunity, and we lose control," he said.

Andry said that the US's additional 32 percent tariff policy on Indonesian products was a serious threat to the domestic trade and labor sectors.

This is because various products from labor-intensive industries, such as textiles, clothing, and footwear, contribute 27.5 percent of Indonesia's total exports to the US.

"In the last three years, more than 30 factories in the textile and derivative sectors have closed. If the government continues to remain silent, we will not only lose our main market, but there will also be a storm of further layoffs that are much bigger," he said again.

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