Indonesian Footwear Industry Struggles Under US Tariff Pressure

Export Decline and Industry Concerns

The Indonesian footwear industry is experiencing significant challenges due to the 19% tariff imposed by the United States. According to data from the Central Bureau of Statistics (BPS), Indonesian footwear exports to the US declined by 23.14% between August and September 2025. The Indonesian Shoe and Footwear Association (APRISINDO) has expressed strong concerns about this development, highlighting the potential negative impact on productivity and employment in the sector.

Industry Response and Government Engagement

APRISINDO is urging the Indonesian government to negotiate reciprocal tariffs with the US that are below 19% or ideally 0%. The association believes that this would help Indonesian footwear manufacturers remain competitive against their counterparts in countries like Vietnam, Cambodia, Pakistan, Bangladesh, and China. APRISINDO's Executive Director, Yoseph Billie Dosiwoda, emphasized that the current tariff situation is causing a decline in orders, which could lead to lay-offs and reduced productivity in the industry.

Economic Implications

The footwear industry is a significant contributor to Indonesia's economy, particularly in terms of employment and export earnings. The challenges posed by the US tariff policy underscore the need for the Indonesian government to engage in proactive trade diplomacy to protect the interests of its exporters. The situation highlights the vulnerability of labor-intensive industries to changes in global trade policies and the importance of competitive tariff structures in maintaining market share.