Jakarta - Economist and Director of Digital Economy at the Center of Economics and Law Studies Nailul Huda assessed that the impact of the United States' reciprocal tariff policy has the potential to weaken the telecommunications and information technology (IT) sector in Indonesia.
"I see that the US import tariff policy will weaken the domestic IT or technology industry. The reason is, our domestic industry is still not able to produce further," said Nailul Huda when contacted by ANTARA, Monday.
According to him, the policy has the potential to weaken the domestic IT industry because local production capacity is still limited. The decline in export demand from the US is considered to make it difficult for domestic products to find alternative markets.
On the other hand, the domestic market is at risk of being flooded with IT products from other countries that are also affected by the US import tariff policy. This is feared to further pressure the local industry that is facing declining exports as well as competition with imported products.
"This is worrying, our industry is under pressure from declining exports, but products from other countries can enter the country," he said.