Indonesia's router exports after the US FCC ban

On 23 March 2026, the US Federal Communications Commission (FCC) effectively banned foreign-made consumer routers from the American market. The ban targets Chinese manufacturers, but it catches every foreign producer — including Indonesia, which exported USD 43.6 million worth of routers to the US in 2025. This post looks at what happened, why Indonesia’s router exports to the US have been on a rollercoaster since 2021, and what the FCC ban means going forward.

The FCC ban

The FCC updated its Covered List to include consumer-grade routers produced in foreign countries. In practice, this means new foreign-made router models can no longer receive equipment authorization — the certification needed to legally sell electronic devices in the US (The Register).

A few important details:

• New models of foreign-produced routers can no longer be marketed or sold in the US
• Existing models that were previously authorized are not affected — consumers do not need to replace their current devices
• An exemption exists for devices granted “Conditional Approval” by the Department of Defense or DHS
• The FCC defines “production” broadly: it covers manufacturing, assembly, design, and development

Indonesia’s router exports to the US

Indonesia is a significant router exporter. Using BPS data for HS 851762 — the tariff line covering control and adaptor units including gateways, bridges, and routers — we can track how Indonesia’s router exports to the US have shifted over the past five years. (The HS code changed from 85176221 under HS2017 to 85176243 under HS2022, but covers the same product.)

All values in million USD.

The numbers tell a dramatic story. In 2021, nearly half of Indonesia’s router exports went to the US. By 2023, that share had collapsed to just 5%. Then it bounced back. Understanding why requires looking at both where Indonesian routers go and the US trade policies that shaped demand.

Where do Indonesian routers go?

Over the full 2021–2025 period, the US is the largest cumulative destination, but the ranking has shifted dramatically year to year.

Cumulative 2021–2025 (million USD):

1. United States — 355.4 (25.1%)
2. South Korea — 257.2 (18.1%)
3. Singapore — 244.6 (17.2%)
4. Japan — 122.5 (8.6%)
5. Mexico — 98.2 (6.9%)
6. Poland — 70.7 (5.0%)
7. China — 44.8 (3.2%)

In 2023, when total exports hit their peak of USD 382.7 million, the destination mix looked very different. Singapore dominated while the US barely registered:

2023 — peak year (million USD):

1. Singapore — 173.3 (45.3%)
2. South Korea — 43.5 (11.4%)
3. Japan — 38.6 (10.1%)
4. Poland — 36.0 (9.4%)
5. Mexico — 21.2 (5.5%)
6. United States — 19.8 (5.2%)

By 2025, the picture had flipped again. Singapore collapsed from the top spot (45.3%) to number 11 (2.2%), while the US climbed back to first:

2025 (million USD):

1. United States — 43.6 (28.3%)
2. South Korea — 36.6 (23.7%)
3. Japan — 16.7 (10.9%)
4. Poland — 6.5 (4.2%)
5. Panama — 5.5 (3.6%)

These swings are not random — they track closely with US trade policy toward China.

The US router import dynamics

The sharp drop from USD 183 million (2021) to USD 20 million (2023) is directly linked to the on-again, off-again tariffs on Chinese goods.

Under Section 301 — the US trade law that authorizes tariffs in response to unfair trade practices — Chinese routers faced a 25% tariff (List 3). This made Chinese routers expensive and pushed US buyers toward alternatives, including Indonesian-made ones. That is why 2021 was a peak year for Indonesia’s US-bound exports.

But in March 2022, the US Trade Representative reinstated tariff exclusions retroactively from October 2021, making Chinese routers competitive again. These exclusions were extended through September 2023. With cheaper Chinese supply restored, US importers shifted back. Indonesia’s US-bound exports cratered, while Singapore — likely serving as a re-export hub — surged from minor player to 45% of Indonesia’s total router exports in 2023.

Several factors brought the US back to the top of Indonesia’s destination list.

First, the Section 301 tariff exclusions expired in September 2023, reinstating the full 25% tariff on Chinese routers. Second, in August 2024, a Congressional probe into TP-Link — one of the world’s largest router makers — escalated into investigations by the DOJ, Commerce Department, and Department of Defense over cybersecurity vulnerabilities and alleged predatory pricing. This made US buyers wary of Chinese-made routers more broadly.

What the FCC ban means for Indonesia

The FCC ban lands at an awkward moment. Indonesia’s router exports to the US were just recovering — at USD 43.6 million, the US is once again Indonesia’s largest destination. But the ban covers all foreign-made consumer routers, not just Chinese ones. Indonesian manufacturers are caught in the crossfire.

Existing authorized models remain unaffected, but any new models produced in Indonesia would need Conditional Approval from the Department of Defense or DHS to access the US market — a much higher bar than standard FCC equipment authorization. Combined with already declining total exports (USD 154 million in 2025 versus the USD 383 million peak in 2023), this ban represents a significant new trade barrier for Indonesia’s electronics sector.

There is an irony here: Indonesia benefited when US policy pushed buyers away from Chinese routers, only to be hit by the next escalation of that same policy. And diversifying away from the US is easier said than done. The US is the world’s largest importer of routers, accounting for 24.4% of global imports in 2024 in this product category. Because the ban applies to all foreign-made routers — not just from specific countries — there is no comparable alternative market to pivot toward. The remaining demand is smaller and more fragmented.

One important caveat: this analysis has not examined investment in Indonesia’s electronics manufacturing sector, particularly facilities dedicated to router production. How much capacity Indonesia actually has — and whether it could scale up to pursue conditional approvals or pivot to other markets — remains an open question.