Indonesia's economy faces more job losses when US tariffs come into effect

Summary

The video discusses the closure of PT Yamaha Indonesia, a factory established in 1974, due to declining global demand. Over 700 workers are impacted, and labor unions estimate that more than 60,000 workers have already lost their jobs this year. The video also explores the effects of US tariffs on Indonesian exports, particularly in labor-intensive industries like footwear. Despite challenges, there are opportunities for Indonesia, especially in attracting high-quality investments from China. The Indonesian government is preparing an economic stimulus package to mitigate the impact of job losses and encourage investments.

Takeaways

• 😀 PT Yamaha Indonesia, one of three global factories making Yamaha pianos, will shut down by December due to declining global demand.
• 😀 Over 700 workers will be impacted by the shutdown and have been offered generous retrenchment packages.
• 😀 Long-time employee Nor Haryanto believes the company hasn't done enough to retain workers amid the closure.
• 😀 The labor union groups estimate over 60,000 workers were laid off in the first quarter of the year due to economic challenges.
• 😀 The Indonesian labor movement predicts more job losses due to the steep tariffs imposed by the US as part of its trade policies.
• 😀 The US imposed a 32% tariff on Indonesian exports, which could harm industries like food and footwear, significant sectors in Indonesia's exports.
• 😀 The trade war between the US and China has raised concerns about Chinese goods redirecting to other markets, intensifying competition for Indonesian industries.
• 😀 Indonesia faces challenges with rising import costs, especially materials from China, and is seeking government action to regulate both legal and illegal imports.
• 😀 The Indonesian government is preparing an economic stimulus package to help affected industries, including deregulation measures to attract investment and protect employment.
• 😀 The US-China trade tensions may create opportunities for Indonesia to attract Chinese investments, particularly in high-quality sectors like electric vehicles, boosting its export potential.

Q & A

Why is PT Yamaha Indonesia ceasing its operations at the end of December?

PT Yamaha Indonesia is ceasing operations due to falling global demand for Yamaha pianos, despite nearly 50 years of production.

How many workers are affected by the shutdown of PT Yamaha Indonesia?

More than 700 workers are affected by the shutdown of PT Yamaha Indonesia.

What has been offered to the workers affected by the shutdown?

The affected workers have been offered a generous retrenchment package.

What concern did Nor Haryanto, an employee with nearly 25 years at the company, express regarding worker retention?

Nor Haryanto expressed that the company has not done enough to retain its workers and questioned why they couldn’t be transferred to other companies under the same corporate group.

How did trade union groups respond to the situation in the first quarter of this year?

Trade union groups estimated that over 60,000 workers were laid off in the first quarter of the year.

What is the predicted impact of the US tariffs on Indonesian workers and businesses?

The labor movement predicted that more workers could lose their jobs due to the steep tariffs imposed by the US on Indonesian exports.

What action is the Indonesian government planning to help industries impacted by the US tariffs?

The Indonesian government is preparing an economic stimulus package, which includes deregulation measures to improve the business environment, attract investments, and create employment.

What trade action did President Trump take in response to Indonesia's trade surplus with the US?

President Donald Trump imposed a 32% tariff on Indonesian exports as part of his reciprocal tariff policy to address trade imbalances.

How could the US tariffs negatively affect Indonesian goods in the US market?

The tariffs could drive up the price of Indonesian goods in the US market, making them less competitive compared to goods from other countries.

What opportunity could arise from the ongoing trade tensions between the US and China for Indonesia?

Indonesia could benefit from the trade tensions by positioning itself as a fertile ground for China to relocate their investments, particularly in sectors like electric vehicles, which would also serve as a hub for Chinese exports globally.