U.S.-Indonesia Tariff Talks Ongoing Despite Govt Shutdown, Deadline in December

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October 20, 2025 | 09:53 pm

TEMPO.CO, Jakarta - The U.S. government has entered its 20th day of shutdown on Monday, October 20, 2025, affecting its tariff talks with Indonesia.

The Coordinating Minister for Economic Affairs Airlangga Hartarto said negotiations are expected to finish by the end of the year. "The deadline is in December," he said at the Ministry of Manpower office, Jakarta, Monday, October 20, 2025.

The minister said the U.S. government shutdown caused the lobbying process to take longer. "We are discussing the details in a legal drafting process. That certainly takes time," he said.

The talks have been conducted through Zoom connection, and the shutdown suspended the negotiations for some time. 

The U.S. government has been shutting down since Wednesday, October 1, 2025, after Congress failed to approve a federal budget for the new fiscal year. Several public services in the country were halted.

Previously, the Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, explained that the negotiation is still ongoing. The discussion will continue at a technical level involving relevant ministries and institutions.

Haryo hopes the situation does not drag on and affect the finalization of the negotiations. "We hope that the political situation in the U.S. can be resolved soon and not hinder the completion of the negotiations," he said.

Back in July, President Donald Trump announced the imposition of a 19 percent import tariff on products originating from the country entering the U.S. However, the Indonesian government is still lobbying for a reduction in tariffs to zero percent for some commodities such as crude palm oil, cocoa, coffee, and rubber.

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