SEAToday.com, Jakarta - In response to the U.S. decision to impose a 32% import tariff on Indonesian products, Finance Minister Sri Mulyani Indrawati announced four strategic measures aimed at easing the burden on Indonesian businesses through tax and customs deregulation.

“These reforms—especially in tax and customs procedures—are designed to reduce the burden on our business community,” she said, as quoted on Antara, during an economic forum with President Joko Widodo in Jakarta on Tuesday.

The first measure involves administrative simplification in tax and customs procedures, expected to reduce costs by 2%, cutting the total tariff burden from 32% to 30%.

The second step reduces the import income tax (PPh) from 2.5% to 0.5%, lowering the burden by another 2% to 28%.

The third measure focuses on adjusting import duties for US-origin goods under the most favored nation (MFN) status. The existing rate of 5–10% will be reduced to 0–5%, offering a further 5% cost reduction.

The final measure targets export duties on crude palm oil (CPO), with adjustments equivalent to a 5% relief.

Combined, the four measures reduce the total tariff burden by 14%, bringing it down to 18%.

“In the absence of tariff relief from the U.S., we’ll continue seeking ways to ease the burden for our exporters,” Sri Mulyani said as quoted on Antara.

Additionally, the government is accelerating trade remedies, such as anti-dumping duties, to be processed within 15 days in coordination with relevant ministries and agencies.

The reforms align with broader tax administration improvements, including the rollout of the Coretax digital system, which is expected to streamline audits, appeals, and validations.

“This is the right time for bold reforms and deregulation,” she said as quoted on Antara.

Writer: Andi Raisa Malaha Thambas