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KN. Trade Minister Budi Santoso said Indonesia is actively pursuing negotiations with the United States to reduce tariffs following the imposition of a 10 percent duty on Indonesian exports. He said the country hopes to secure lower tariffs, including a zero-percent rate for certain export commodities. Budi said Indonesia qualified for the lower tariff partly because it has regulations prohibiting forced labor and does not import goods produced through such practices. “The situation remains dynamic, and the Indonesian government continues to engage with the United States in pursuit of more favorable tariff rates,” Budi said.
Indonesia is seeking U.S. tariff exemptions for its exports of spare parts and plantation commodities. Chief Economic Minister Airlangga Hartarto confirmed that some Indonesian exports would be able to bypass the looming tariffs. He did not say if the exemptions would cover crude palm oil.
Indonesian President Prabowo is facing mounting pressure from investors as the rupiah plunged to 18,129 per U.S. dollar and the Jakarta Composite Index (JCI) dropped more than four percent, marking a severe crisis of confidence in Indonesia’s financial markets. The market turmoil stems from concerns over the government’s ambitious spending programs, including the Free Nutritious Meals (MBG) program requiring hundreds of trillions of rupiah, fiscal discipline, and policy consistency amid corruption scandals involving government officials. Market analysts warn that Indonesia is caught in a “doom-loop” where declining investor confidence triggers currency weakness, which in turn further erodes market sentiment. The crisis has also revived discussions about a potential cabinet reshuffle.
Indonesian sovereign wealth fund Danantara is poised to kick off the U.S. leg of its planned dollar bond roadshow this week, as the nation’s policymakers step up efforts to halt a deepening selloff in the nation’s markets. Fund officials will hold meetings with investors in Boston on June 9, and the roadshow will move to New York the following day. Danantara told some investors that it plans to use part of the proposed bond proceeds to help refinance a $1 billion loan it got earlier this year, according to people familiar with the matter who asked not to be identified discussing private matters.
The Trade Ministry has issued Trade Minister Regulation No. 19/2026 on e-commerce to strengthen Indonesia’s digital trade ecosystem. Trade Minister Budi Santoso said that the regulation aims to ensure a balance of rights and responsibilities among businesses, digital platforms, and consumers involved in online transactions. The new rules focus on several key areas, including protection for domestic products and the use of artificial intelligence (AI) technology.
The United States used its 250th Independence Day celebration in Jakarta to reaffirm its commitment to strengthening strategic ties with Indonesia. U.S. Deputy Secretary of State Christopher Landau underscored the importance of Indonesia and ASEAN as strategic partners of the United States. He also said that he could not imagine a better place to be than in Jakarta with friends from Indonesia and the ASEAN community, as well as partners from Canada and Mexico, which together will host the upcoming FIFA World Cup. U.S. Embassy Chargé d’Affaires Peter Haymond said the two countries share core values including democracy, freedom, and prosperity, which underpin the bilateral relationship. Haymond described Indonesia as one of Washington’s most important partners in the Asia-Pacific and said cooperation continues to expand in defense, maritime security, cybersecurity, trade, and investment.
U.S. Deputy Secretary of State Christopher Landau’s visit to Indonesia is expected to create greater opportunities for investment, technology cooperation, and Indo-Pacific security coordination rather than directly influence U.S. tariff policies, according to international relations analyst Andrea Abdul Rahman Azzqy. He noted that U.S. trade tariffs are determined through formal government mechanisms in Washington and cannot be changed through a diplomatic visit alone. Andrea said the visit’s greatest value lies in its potential to expand investment, digital technology cooperation, and economic partnerships that deliver tangible benefits to Indonesia.
Industry Minister Agus Gumiwang Kartasasmita said Indonesia and Russia strengthened strategic industrial cooperation during a bilateral meeting on the sidelines of the BRICS Forum on Partnership on the New Industrial Revolution 2026 in Xiamen, China. Agus said that the two countries have expanded cooperation across multiple sectors. He added that Indonesia’s BRICS membership has created new opportunities to strengthen economic and industrial resilience through partnerships with fellow member states, including Russia.
Indonesian President Prabowo Subianto announced an ambitious plan to deploy 100 gigawatts (GW) of solar photovoltaic (PV) capacity within five years equivalent to 93 per cent of Indonesia’s current power capacity. In response to the energy crisis following the US-led war against Iran, the president compressed the timeline to two years, framing solar-powered electricity as an urgent need amid the current geopolitical landscape. This commitment provides new momentum for Indonesia’s energy transition and decentralisation plans. However, the bolder ambition leaves serious concerns unaddressed: the Prabowo administration is maintaining its strategy to rely on village cooperatives to execute the programme without strengthening their capacity.
U.S. Deputy Secretary of State Christopher Landau visited Indonesia this week to discuss stronger economic and strategic cooperation. Foreign Affairs Ministry spokesperson Vahd Nabyl A. Mulachela said Deputy Foreign Minister Arif Havas Oegroseno received Landau in Jakarta. They discussed priority bilateral issues, including the digital economy and explored ways to boost U.S. investment in Indonesia. They also discussed cooperation in renewable energy, technology, and maritime affairs. Nabyl said Indonesia welcomed the visit as part of efforts to strengthen the Indonesia–U.S. strategic partnership.
U.S. Deputy Secretary of State Christopher Landau described Southeast Asia as a dynamic region with strong economic growth and significant opportunities. He said the United States respects Indonesia’s independent and active foreign policy and does not expect Jakarta to choose sides in global geopolitical competition. Landau said Washington supports Indonesia’s efforts to maintain relations with various countries and wants to serve as a partner that helps diversify Indonesia’s international ties. He said both countries are exploring ways to expand economic and commercial cooperation, particularly in the energy and high-tech sectors. Landau said the United States wants to be seen as a reliable partner that respects other nations and creates opportunities that improve prosperity. He added that U.S. leadership in technology and energy provides a strong foundation for deeper cooperation with partner countries, including Indonesia.
President Prabowo summoned several Red White Cabinet members to his Kertanegara residence in Jakarta, including Investment and Downstream Industry Minister Rosan Roeslani; Energy Minister Bahlil Lahadalia; National Economic Council Chair Purbaya Yudhi Sadewa; Higher Education, Science, and Technology Minister Brian Yuliarto; Danantara Chief Operating Officer Dony Oskaria; State Secretary Minister Prasetyo Hadi, and Cabinet Secretary Teddy Wijaya. According to the Cabinet Secretary, Prabowo received a report from Rosan on his recent visits to the United States and several countries in Europe and Asia. He said the report highlighted growing international confidence in Indonesia, reflected in strong investor interest and increased investment in strategic sectors.
President Prabowo instructed Investment Minister Rosan Roeslani to publicly announce the results of his recent visits to the United States and Europe promising “good news” regarding foreign investment commitments to Indonesia. Cabinet Secretary Teddy Wijaya said the President directed Minister Rosan to disclose data on the positive development of foreign investment inflows to Indonesia, addressing public concerns about the country’s economic outlook and investment climate.
Investment and Downstream Industry Minister and Danantara CEO Rosan Roeslani said Danantara has conducted roadshows in Hong Kong, Singapore, Boston, London, and New York to promote its inaugural $1.5 billion global bond sale. He said the U.S. investors emerged as the largest buyers, reflecting strong international confidence in the state investment fund. The bond sale attracted orders of approximately $4.6 billion, with U.S. investors accounting for 52 percent of the 10-year tranche and 38 percent of the five-year tranche. Rosan also said the strong demand from global institutional investors enabled the fund to secure favorable pricing and demonstrated confidence in Indonesia’s economic prospects and the fund’s governance framework.
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