Industries in Riau Province are urged to accelerate product downstreaming in response to the U.S. government's plan to raise tariffs on Indonesian exports by up to 32%. Dahlan Tampubolon, Senior Economist at the University of Riau, emphasized that Riau industries should focus on exporting finished products rather than raw materials to increase their added value. He noted that Riau's current exports primarily consist of intermediate products, so improvements in production efficiency and quality are necessary to maintain competitiveness despite the tariff increase. While Indonesia's exports are not highly competitive compared to other nations, Riau benefits from its proximity to raw material sources. In addition to downstreaming their products, entrepreneurs and exporters in Riau should strengthen trade relations with non-U.S. markets, such as the European Union, China, India, and other ASEAN countries, to reduce dependence on the U.S. market. Dahlan also called on local governments to provide tax incentives and ease licensing procedures to help producers cope with reduced profit margins. Meanwhile, Riau Governor Abdul Wahid expressed concern about the U.S. tariff hike, stressing that it would negatively impact not only the national economy but also Riau's regional economy, which heavily relies on exports like palm oil and textiles. He highlighted that companies such as Riau Andalan Pulp and Paper (RAPP) would likely see direct consequences on their export performance. Source: https://m.goriau.com/berita/baca/tarif-impor-as-naik-industri-di-riau-disarankan-segera-hilirisasi-produk.html