[News] Trump Sets 19% Tariff on Indonesia, Giving Edge to Taiwan’s Foxconn, Pegatron

According to Economic Daily News, the U.S. has announced a significant reduction in tariffs on Indonesian goods, cutting the rate from 32% in early April to 19%—the lowest among all Asian countries at present. Taiwanese electronics manufacturers such as Foxconn and Pegatron, which have production facilities in Indonesia, are expected to benefit from the reduced tariffs when exporting to the U.S.

As noted in the report, Foxconn has the largest production footprint in Indonesia among Taiwanese tech firms, and is expected to be the biggest beneficiary. Its operations in the country focus on commercial electric vehicles, two-wheeled electric vehicles, solid-state batteries, and the energy sector.

The report adds that Foxconn has also formed strategic partnerships with local companies, including a joint venture with Indonesian energy firm Indika, aiming to produce batteries and electric vehicles in the country.

Meanwhile, Pegatron, in strategic partnership with Telkomsel—Indonesia’s largest digital telecommunications provider—has established a factory in Batam, Indonesia, primarily producing networking and communication products. As the report notes, the company has been actively expanding into 5G-related applications, and in April this year, it announced the launch of its latest smart manufacturing facility in Batam.

Industry sources state that electronics manufacturers currently operating in Indonesia are expected to gain an advantage from the lower tariffs. However, according to the report, whether orders will shift to these facilities remains uncertain and will depend on the outcome of ongoing tariff negotiations between Trump and various countries. More clarity is expected after the talks conclude on August 1.

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(Photo credit: Indika’s LinkedIn)