TEMPO.CO, Jakarta - The Indonesian government is preparing two strategies to respond to the imposition of a 32 percent import tariff from the United States on Indonesian products. United States President Donald Trump announced the policy in an official letter to President Prabowo Subianto on July 7, 2025.
Coordinating Minister for Economic Affairs Airlangga Hartarto will once again lead the negotiation process with the US government. Airlangga departed for Washington DC on July 8, 2025, to convey Indonesia's position.
Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto stated that the first strategy is to convince the US that Indonesia is a strategic trading partner.
He said, "The new strategy, which I also conveyed to Minister Airlangga, is to emphasize that Indonesia is a very strategic country with abundant natural resources," during a press conference at the Ministry's office in Lapangan Banteng, Jakarta, on Wednesday, July 9, 2025.
The government hopes that the US will consider Indonesia's position, which has fulfilled several requests, including reducing the trade deficit.
The second strategy, according to Haryo, is to expand trade cooperation with other partner countries.
At present, Indonesia is developing alternative markets, such as through the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and various other CEPA agreements that are still in process
"We also certainly cannot expect complete success in negotiations, as this is currently the United States (negotiating) not only with Indonesia but with various countries," said Haryo.
He believes that the negotiation process with the US will take time because the US government is currently managing trade relations with many countries simultaneously.
Previously, Indonesia had taken several steps to meet the US' demands. The government formed a deregulation task force to reduce non-tariff barriers and offered to import US products worth US$34 billion, exceeding the complained trade deficit of US$19 billion by the US government.
However, Trump still imposed a new tariff of 32 percent, which will take effect on August 1, 2025.
In this policy, the US also imposed import tariffs on 13 other countries, including Malaysia (25 percent), Thailand (36 percent), Cambodia (36 percent), Myanmar (40 percent), Laos (40 percent), Japan (25 percent), South Korea (25 percent), Bangladesh (35 percent), Kazakhstan (25 percent), Tunisia (25 percent), Serbia (35 percent), Bosnia (30 percent), and South Africa (30 percent).
Editor's Choice: Trump's Tariff Relief Offered to Indonesia, But with Terms Attached
Click here to get the latest news updates from Tempo on Google News
Indonesia Releases Names of Companies Signing Trade Agreements with the US
28 menit lalu
Several Indonesian companies have already signed trade agreements with the United States. What are they?
Trump's Tariff Relief Offered to Indonesia, But with Terms Attached
46 menit lalu
President of the United States, Donald Trump, has offered Indonesia the opportunity to exempt from a 32 percent import tariff. What are the terms?
U.S. Supreme Court Allows Trump to Resume Mass Layoffs
52 menit lalu
The Supreme Court of the United States has lifted the temporary ban on President Donald Trump's order to carry out mass layoffs in federal agencies.
UK Ready to Impose Additional Sanctions on Israel if Gaza Ceasefire is Not Reached
5 jam lalu
Foreign Minister David Lammy said Britain is ready to impose additional sanctions on Israel if a ceasefire in Gaza is not reached
Elon Musk's New America Party: A Look at Its Challenges and Possibilities
6 jam lalu
Elon Musk's new America Party is positioned as a centrist alternative, focusing on technology, budget-consciousness, and pro-energy.
UN Warns Israel's Gaza Relocation Plan Could Be Forced Displacement
18 jam lalu
The UN has previously issued warnings against statements that suggest relocating Palestinians from Gaza.
Gov't Denies Claim that BRICS Accession Causes U.S. Tariff Imposition
18 jam lalu
The Deputy Foreign Minister denied that Indonesia's participation in BRICS is the reason behind the 32% reciprocal tariff imposed by the U.S.
Trump Offers Tariff Exemption to Indonesia for U.S. Factories
20 jam lalu
U.S. President Donald Trump recently announced an import tariff of 32 percent on Indonesian products.
Iran Rebuffs Trump's Claim of Meeting Request Amid Escalating Tensions
20 jam lalu
Iran has denied U.S. President Donald Trump's statement on Tuesday, regarding Iran's request for a meeting to discuss Tehran's nuclear program.
Trump's Tariff Hike Risks Mass Layoffs in Indonesian Textile Sector, Says Economist
20 jam lalu
Trump's 32% tariff on Indonesian goods could severely impact the national economy and trigger mass layoffs in the textile industry, economist says.
