JAKARTA – Automotive manufacturing industry players are reviewing a proposal for export incentives in response to falling demand from several countries impacted by the reciprocal tariff policies of the United States (US).

This was conveyed by Nandi Julyanto, President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN), during a discussion titled Trump Effect: How Indonesia Can Seize Opportunities Amid a Trade War, hosted by the Kagama Leaders Forum in Jakarta, Wednesday (14/5).

According to Nandi, Trump’s policy of reducing export tariff subsidies for trade partners such as Mexico has affected demand for Indonesian automotive products. He also noted that the policy will put pressure on the purchasing power of US trading partners and on Indonesia’s automotive components industry.

Nandi stated that the proposed export incentive would be submitted through the Indonesian automotive components industry association. “Incentives for businesses affected by declining demand from overseas markets,” he said.

He added that the US tariff policy would only affect demand in export markets, while the domestic market remains stable.

On the other hand, Nandi believes that US policies are encouraging businesses to explore new export markets for automotive products. (LK/ZH)