TEMPO.CO, Jakarta - A textile and textile product issuer, PT Pan Brothers Tbk (PBRX), welcomes the implementation of a reciprocal tariff of 19 percent from the United States for Indonesian products. The company states that the tariff rate is lower compared to other countries in Asia.
Pan Brothers Director Fitri Ratnasari Hartono is optimistic that this 19 percent tariff will have a positive impact on the company's performance. "So, the impact is very positive for Pan Brothers, for labor-intensive and apparel industries, compared to competitor countries that also produce apparel. So, the connotation is very beneficial for the apparel production sector," she said in a disclosure of information at the Indonesia Stock Exchange, quoted on Sunday, July 27, 2025.
Fitri explained that Pan Brothers' domestic market is mainly related to global brands. Currently, Pan Brothers is a supplier for Uniqlo, which also operates in Indonesia. "So, the company does supply the domestic market, but the orders come from their global demand," she said.
Therefore, Fitri mentioned that Pan Brothers is a multinational supplier because the company supplies global brands such as Adidas, The North Face, Uniqlo, Lululemon, Kathmandu, Arc'teryx, Amer Group, Lacoste, and others. In 2024, according to Fitri, Pan Brothers also supplied 60 percent to the Asia Pacific region, about 15 percent to Europe, and 25 percent to the U.S.
On the other hand, Fitri stated that the impact of this reciprocal tariff also opens up opportunities, especially for Indonesia and the Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA). According to her, the potential market share for Indonesian products in the European Union is significant. "If Indonesia obtains a 0 percent tariff when this cooperation goes into effect around early 2027, it will be very advantageous for our industry, especially labor-intensive industries such as Pan Brothers," said Fitri.
Meanwhile, the Chairperson of the Indonesian Retailers and Tenants Association (Hippindo), Budihardjo Iduansjah, believes that the 19 percent reciprocal tariff imposed by the U.S. on Indonesian products will not disturb small and medium enterprises (SMEs) in the country.
According to Budihardjo, the imported products segment from the U.S. is different from local products, so they do not directly compete. "If it's clothing and shoes, it definitely won't harm. In fact, we ask that it be facilitated. U.S. products are in a different segment. What we are concerned about is China. If it's 0 percent for China, oh no, let's not go there," said Budihardjo after attending the Modern Retail Indonesia (Harmoni) press conference at the Smesco Building, South Jakarta, on Wednesday, July 23, 2025.
He explained that the existence of imported retail products can increase trade and drive the shopping tourism sector. "A breath of fresh air for retailers. This means that the most affordable American products may be found in premium outlets in Indonesia. Maybe people from Singapore will come to Indonesia for shopping," he said.
Amira Nada Fauziyyah contributed to the writing of this article
Editor's Choice: Reactions from US Entrepreneurs on Trade Deal with Indonesia
Click here to get the latest news updates from Tempo on Google News
15 Indonesians Reside Near the Thailand-Cambodia Border
3 jam lalu
Data on the 15 Indonesian citizens located along the Thailand-Cambodia border was obtained from self-reporting data by the Ministry of Foreign Affairs.
Here Are the Indonesian Provinces with the Highest Poverty Rates
6 jam lalu
Here are the provinces in Indonesia with the highest poverty rates, reported by the Central Statistics Agency (BPS).
7 Provinces in Indonesia with Inequality Levels Above the National Average
6 jam lalu
The Central Statistics Agency (BPS) recorded the income inequality level in Indonesia (Gini ratio) in March 2025 at 0.375.
5.2 Magnitude Earthquake in Banda Sea Jolts Wakatobi
6 jam lalu
Indonesia's Meteorology, Climatology, and Geophysics Agency (BMKG) reported a tectonic earthquake that hit the northeast coast of Wakatobi.
What is the Impact of the Thailand-Cambodia War on Indonesia?
9 jam lalu
Activists and legislators remind of the impact of the Thailand and Cambodia war. The government is urged to take an active role in diplomacy.
Indonesian Police Admits Widespread Availability of Citizens' Personal Data on the Internet
9 jam lalu
The vulnerability of personal data online and the potential misuse of such data have become a hot topic recently.
Thailand-Cambodia Border Clashes Raise Concerns of Foreign Intervention
22 jam lalu
Experts warn about the risk of foreign intervention due to ASEAN's slow response to the armed conflict between Thailand and Cambodia.
Thailand-Cambodia Border Conflict Puts ASEAN Credibility at Stake
1 hari lalu
A researcher from CSIS believes the Thailand-Cambodia conflict has become a serious test that has jeopardized ASEAN's credibility for failing to respond to the crisis in its own region.
Erick Thohir Urges Indonesia to 'Play Hard' Against Vietnam in AFF U-23 Final
1 hari lalu
The Indonesian U-23 national team advanced to the final round after defeating Thailand in the semifinals of the 2025 AFF U-23 Cup.
Thailand Coach Acknowledges Indonesia's Strength in AFF U-23 Cup Semifinal
1 hari lalu
Thailand was eliminated in the semifinals after losing to Indonesia in a penalty shootout at the 2025 AFF U-23 Cup.
