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.
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