Golden Flower (POLU) Remains Optimistic Amid US Tariff Hike

Strategic Market Diversification

PT Golden Flower Tbk (POLU), the manufacturer behind prominent global fashion brands such as Calvin Klein and Ralph Lauren, has expressed optimism regarding the impact of the recent 19% US reciprocal tariff on its future financial performance. According to Harry Sutopo, the company's President Director, the current tariff rate imposed by the US is considered more favorable compared to Vietnam's, potentially benefiting Indonesia's export position.

Proactive Business Strategy

In response to the changing trade environment, POLU is implementing a strategic market diversification plan. The company is gradually increasing its production capacity to support its market expansion efforts. This proactive approach is designed to mitigate potential risks associated with international trade policies while capitalizing on emerging opportunities in the local and international markets.

Positive Outlook on Indonesian Exports

The management's confidence stems from the belief that Indonesia's current tariff position is relatively advantageous. With the US tariff at 19%, which is lower than the rates applied to Vietnamese exports, POLU sees potential for increased competitiveness in the US market. This favorable tariff differential is expected to support Indonesia's export growth in the apparel sector.

Business Continuity and Growth Plans

POLU's strategic response to the US tariff hike demonstrates the company's commitment to maintaining business continuity and pursuing growth opportunities. By diversifying its market presence and enhancing production capabilities, POLU aims to ensure stable financial performance while navigating the complexities of international trade dynamics.