TEMPO.CO, Jakarta - The secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, said that Indonesia and the United States have started engaging in virtual talks regarding the US' reciprocal tariffs. The negotiation is expected to finish within 60 to 90 days.
Technical teams from both countries have agreed to conclude the negotiations within 60 days, starting from US President Donald Trump's decision to postpone reciprocal tariffs on April 9, 2025. According to Susiwijono, both teams are pursuing the finish line.
"We hope to complete the negotiations within 60 days, or, at the latest, 90 days from April 9, which means July 8, 2025," he said when met at his office on Wednesday, May 7, 2025.
Suiwijono claims he had seen progress in the talks this week but stopped short of disclosing them since the team had to sign a non-disclosure agreement (NDA).
According to Susiwijono, the US team or the Office of the United States Trade Representative (USTR) is very open to discussions with Indonesia. He hopes that the current progress is better than other countries.
Amid the negotiation efforts, the Indonesian government will also reform a series of domestic policies. Policy changes will be reviewed by a deregulation task force that will soon be established. Susiwijono stated that the Coordinating Ministry for Economic Affairs has completed the framework for the formation of the task force.
Aside from the Deregulation Task Force, the government will also form two other task forces, namely the labor termination task force and the negotiation task force. The task force frameworks have been submitted to the State Secretary Ministry and are awaiting Prabowo's approval.
Coordinating Minister for Economic Affairs Airlangga Hartarto previously emphasized the importance of diversifying trading partners and strengthening regional cooperation, considering that 87 percent of global trade does not involve the US.
"Our target is indeed to expand the market. If we're seeing the US as the epicenter of such uncertainty and turmoil, Indonesia will look for other regions to market our products," Airlangga Hartarto said in Jakarta on Wednesday, as quoted from Antara.
Airlangga stated that Indonesia must remain vigilant against global competition and the declining trade volume due to policy uncertainty carried out by the US and the budding trade war between the US and China.
To face these challenges, the government leverages market potential and investments from various international cooperation forums, such as the Regional Comprehensive Economic Partnership (RCEP) Agreement, Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA), and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Furthermore, the government is also preparing a package of policy deregulation to facilitate business licensing in order to attract investors and to prepare anti-dumping strategies by considering safeguards and the competitiveness of the domestic industry.
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