TEMPO.CO, Jakarta - United States President Donald Trump has lowered import tariffs for Indonesian products to 19 percent from the previous 32 percent. Indonesia's Minister of Trade, Budi Santoso, views this agreement as an opportunity for the nation to boost its exports.
According to Budi, this tariff reduction will make Indonesian products more competitive compared to those from other ASEAN countries. He explained that previously, Indonesian export tariffs to the U.S. were on par with other nations. However, following negotiations and the U.S. implementing reciprocal tariffs, Indonesia now benefits from lower rates.
"Previously, we competed with the same tariffs; now we compete with different tariffs, and ours are lower," he said after a meeting with Commission VI at the People's Representative Council (DPR) building in Jakarta on Wednesday, July 16, 2025.
This means, Budi went on, Indonesia has a greater opportunity to penetrate the U.S. market, ideally leading to increased exports. While optimistic, he expressed hope that Indonesia might secure even more favorable tariffs before the new rates take effect on August 1, 2025. He also anticipated that these lower import tariffs would encourage greater investment in Indonesia.
He revealed that the Indonesian government has already identified 10 key Indonesian products highly exported to the U.S. They have also analyzed 10 competing countries that market similar products, comparing their reciprocal tariffs. Based on their observations, Indonesia currently enjoys more favorable tariffs.
As previously announced by President Trump via his personal social media, U.S. exports to Indonesia will be free from tariffs and non-tariff barriers. Minister Budi sees this as a crucial opportunity to support domestic industries, noting, "Because most of the goods we import from the U.S. are raw materials and capital goods."
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