Here’s the Impact of U.S. Reciprocal Tariffs on Internet Industry in Indonesia

Here’s the Impact of U.S. Reciprocal Tariffs on Internet Industry in Indonesia
Here’s the Impact of U.S. Reciprocal Tariffs on Internet Industry in Indonesia
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The global tech community has been shaken by a sweeping trade decision from U.S. President Donald Trump. His new reciprocal tariff policy is triggering widespread debate, especially in countries with strong economic ties to the U.S. In Indonesia, concerns are growing over its potential effects on the internet industry, but experts say the outcome might not be as straightforward.

The Indonesian Internet Service Providers Association (APJII) believes that Indonesia’s internet infrastructure may not be significantly disrupted. That’s because much of it is built on products sourced from countries like China, rather than the U.S.

“Internet in Indonesia won’t depend on U.S. products as long as substitutes from China or Europe are still available,” said APJII Secretary General Zulfadly Syam, quoted by Bisnis on Monday, April 7, 2025.

According to Zulfadly, the national internet industry could continue to grow steadily if alternative sources remain accessible. But the concern doesn’t end there.

Read also: Indonesia Faces New U.S. Tariffs, But Experts Say There’s Still Room for Optimism

There’s a possibility of indirect impact if Chinese products—despite being the primary source—still rely on American-made components such as chipsets. That could create a ripple effect where tariffs on U.S.-linked components affect Indonesia too.

“This domino effect could happen because Trump’s tariff plan targets most countries,” Zulfadly warned.

Trump’s policy has already made headlines as one of his most aggressive moves against the global trade system, which he sees as fundamentally unfair to the U.S. His administration has introduced a minimum 10% tariff on all goods imported to the U.S., and imposed additional duties on about 60 countries with the highest trade deficits.

Indonesia, like many others, is closely monitoring the situation. While the internet industry sector in Indonesia may escape direct damage for now, the broader implications of a tariff-heavy trade environment are still unfolding.