Glembert
KN. President Prabowo Subianto said that Indonesia would respond to the reciprocal tariffs imposed by the United States by sending envoys to conduct equal and fair negotiations. “We will open negotiations with the United States. We will convey our intention to maintain good relations, and we also want fair relations,” he remarked.
Prabowo noted that the U.S.-imposed tariffs were aimed at bolstering industrial growth and that Indonesia would prioritize similar measures. Should an agreement be reached and reasonable justifications provided for the tariffs, Prabowo assured that Indonesia would respect the decision.
“The United States prioritizes the interests of their people. We also think about our people. There is no need to be worried. We believe in our own strength,” he affirmed. While attending a rice harvest event in Majalengka, Prabowo urged the public to remain calm in response to Trump’s tariff.
The Indonesian government intends to fly to the United States no later than next week to meet with the U.S. government and part of negotiations related to Indonesia’s 32 percent import tariff.
Prabowo has assigned Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Finance Sri Mulyani Indrawati, and Minister of Foreign Affairs Sugiono to the United States to negotiate said Airlangga after a closed meeting with Prabowo.
The Indonesian government has sent a letter to U.S. trade authorities regarding the import tariff policy, said Coordinating Minister for Economic Affairs Airlangga Hartarto at the Joint Economic Discussion event with the President of the Republic of Indonesia.
The government has vowed to import more goods from the United States to gain leverage in bilateral negotiations and ease tariffs as Jakarta seeks to avoid retaliatory measures.
Following a multi-stakeholder meeting, Minister Airlangga Hartarto said in a press conference that Prabowo had instructed him to narrow Indonesia’s $18 trillion surplus in trade with the United States by importing more U.S. products.
He added that the government would probably push for importing more U.S. goods in procurement for national strategic projects, including for refineries. The senior minister said Jakarta would “take the negotiation path” and will not resort to imposing retaliatory measures, much like “most ASEAN member states.”
He said government officials of ASEAN countries would meet on April 10 “to calibrate their stance.” He went on to say that the U.S. Trade Representative (USTR) “is awaiting a concrete proposal from Indonesia.”
Indonesia is mulling importing more American goods, including cotton and wheat, in a bid to convince US President Donald Trump to revise his reciprocal tariffs.
Last week, Trump unveiled sweeping new tariffs to level the playing field with nearly all US trading partners. Indonesia will be subject to a 32 percent rate. The US claimed that Indonesia had been charging its goods 64 percent tax.
The new “reciprocal” tariffs imposed globally by U.S. President Donald Trump are fueling concern that higher costs will squeeze businesses in Southeast Asia that have relied on inexpensive labor. Among the areas at risk are the fisheries and garment industries, which are especially labor-intensive and count on the U.S. as a major market.
Indonesian Foreign Affairs Deputy Minister Arif Havas Oegroseno said that the vacant position of Indonesian ambassador to the United States would not affect the negotiation process for the U.S. reciprocal tariff policy.
He emphasized that the delegation team led by Economic Affairs Coordinating Minister Airlangga Hartarto is capable of negotiating with the United States in a high-level meeting. He said the ambassador position vacancy is due to the recent change in government and that the post will be filled “as soon as possible.”
The economy has evolved into a source of pressure, a symbol of partisanship, and a tool in the struggle for global dominance. In this context, the Indonesian economy can no longer be sustained solely by balance-sheet calculations and macroeconomic targets. It must be designed as a defensive system with strategic resilience.
The Indonesian Foreign Affairs Ministry, in a written statement responded to the new 32 percent tariff announced by U.S. President Donald Trump, warning it will significantly impact Indonesia’s export competitiveness. “Indonesia’s main exports to the United States include electronics, textiles, footwear, palm oil, rubber, furniture, shrimp, and marine fishery products,” the ministry said.
Indonesia is engaging with the U.S. government, sending a high-level delegation to Washington, D.C., and preparing responses to issues in the 2025 National Trade Estimate (NTE) report by the U.S. Trade Representative (USTR). It added that President Prabowo Subianto has instructed ministers to streamline regulations and remove non-tariff barriers to boost competitiveness, investor confidence, and economic growth.
“The government will take further steps to improve the investment climate, spur growth, and create jobs,” the ministry said. Indonesia is also coordinating with Malaysia, as ASEAN chair, to take joint action, recognizing the impact on all 10 ASEAN nations.
Economic Affairs Coordinating Minister Airlangga Hartarto said that the U.S. reciprocal tariffs would significantly impact Indonesia’s export competitiveness in the U.S. market. He said that the Indonesian government will continue to communicate with the U.S. government at various levels, including sending a high-level delegation to Washington, D.C., for direct negotiations.
As part of the negotiations, the Indonesian government has also prepared various measures to address issues raised by the U.S. government, particularly those mentioned in the 2025 National Trade Estimate (NTE) report published by the U.S. Trade Representative.
The newly imposed 32 percent tariffs by the United States on Indonesian imports are expected to significantly impact Indonesia’s automotive and electronics exports, a leading economist warned.
Between 2019 and 2023, Indonesia’s exports in both sectors recorded an average annual growth of 11 percent, including to the US market, according to Bhima Yudhistira, executive director of the Center of Economics and Law Studies (Celios).
Trump declared April 2 as “liberation day” and announced tariffs, the largest protectionist move since the 1930s. This policy is misguided and contrary to basic economic principles, as it will increase the prices of imported goods, drive inflation, and burden US consumers.
The US calculates based on Indonesia’s trade deficit with the US divided by US imports from Indonesia, resulting in a 32 percent tariff… The government is preparing strategies to address the issues raised by the US Government, such as clarifying issues raised by the NTE 2025 report…
This policy has caused panic worldwide, with officials from China, Japan, and the European Union requesting postponement of the policy and a meeting to find a solution. Stock trading on Asian and European exchanges was pressured after Trump announced “Liberation Day.” President Ronald Reagan opposed such protectionist policies, stating they would lead to the decline of the US economy and create a moral hazard for American entrepreneurs.
President Trump’s policy has prompted industries worldwide to consider the distribution of production output. Raw materials are now stored in storage to prevent damage, and production results are sent directly to the ordering country. … The situation is a crisis, and it is crucial for all parties to work together to help Indonesia weather this storm.
Economist and capital market practitioner Hans Kwee recommended that Indonesia intensify trade relations with BRICS member countries (Brazil, Russia, India, China, and South Africa) in response to rising U.S. import tariffs on multiple countries. He elaborated that fostering stronger trade ties with BRICS members is a strategic move to identify new alternative revenue sources amid high import tariffs imposed by the United States. He cautioned that the high import tariffs imposed by the United States on various countries could adversely affect Indonesia’s economy and financial markets.
Stephen Olson, Visiting Senior Fellow at ISEAS – Yusof Ishak Institute and a Non-Resident Fellow and Visiting Lecturer at the Yeutter Institute of International Trade said “Liberation” day has arrived in the US, and as promised, the Trump administration has unveiled its plans for an unprecedented swath of tariff increases. Declaring the lack of reciprocity in its bilateral trade relationships to be an “unusual and extraordinary threat” to the national security and economy of the US, President Trump has announced a 10 per cent across-the–board tariff on all countries and double-digit “reciprocal” tariffs on those countries deemed to be the worst offenders.
China’s tariff rate is 34 per cent while the EU was hit with a 20 per cent tariff. In Southeast Asia, Vietnam was assessed a 46 per cent rate, Thailand at 36 per cent, Indonesia at 32 per cent, Malaysia at 24 per cent, and Cambodia at 49 per cent. The wealthiest country in the region, Singapore, got off relatively lightly, with only the baseline 10 per cent being applied. (Full list available here).
Of note for at least some countries in Southeast Asia, semiconductors will be exempted from the reciprocal tariffs.
U.S. President Donald Trump has officially announced a new tariff policy targeting the country’s trading partners, including Indonesia. Speaking at the White House Rose Garden, Trump described the policy as a necessary measure to address the trade deficit, which he labeled a “national emergency,” saying, “We are finally putting America first.” Indonesia is subject to a 32% tariff, placing it on par with Taiwan and Fiji.
This rate is higher than those imposed on Japan (24%), India (26%), and South Korea (25%). The highest tariff, 49%, is levied on Cambodia, while the lowest, 10%, applies to several countries, including the United Arab Emirates, Australia, and New Zealand. Trump labeled the policy as reciprocal, stating that the U.S. is imposing tariffs proportional to those that other countries apply to American goods.
The Indonesian Finance Ministry assured that the government will mitigate the impact of Trump’s 32 percent reciprocal tariff on Indonesia. “We will continue to monitor and address the potential negative effects,” said Finance Ministry spokesperson Deni Surjantoro.
Deni noted that Trump’s policy targets countries with large trade deficits and tariff gaps. In 2024, Indonesia ranked 15th among U.S. trade deficit partners at $19.3 billion, though its tariff gap remains relatively small. “So, the risk of additional tariffs is limited, but we must remain vigilant,” he added. Deni also highlighted potential opportunities, as higher export costs may push industries to relocate to safer markets like Indonesia. “This policy will reshape international trade dynamics,” he said.
Permata Bank Chief Economist Josua Pardede said that the United States’ policy of imposing high tariffs — reaching up to 32 percent — on various Indonesian products will have a significant impact on the economy, particularly for exporters. “This policy specifically affects products that have long competed closely with U.S.-made goods, such as electronics, machinery, chemicals, cosmetics, pharmaceuticals, iron, steel, and a wide range of agricultural products,” he said.
U.S. President Donald Trump, through the U.S. Trade Representative (USTR), on Monday released a list of 58 countries, including Indonesia, with policies hindering U.S. trade. The report highlights several of Indonesia’s regulations affecting trade, such as import taxes, licensing, agricultural restrictions, customs, and pharmaceutical market access.
The United States also raises concerns over Indonesia’s halal import regulations, which create bureaucratic hurdles. Additionally, U.S. stakeholders have criticized Indonesian tariffs exceeding WTO limits on certain information and communication technology products. The report also flags Finance Ministerial Regulation No. 41/2022, which expands advance income tax requirements on imports under Income Tax Article 22.
The U.S. government will review $9 billion of funding for Harvard University over alleged anti-Semitism on campus, authorities said after it cut millions from Columbia University, which has also seen fierce pro-Palestinian student protests. As reported by the AFP, President Donald Trump has aggressively targeted prestigious universities that saw bitter protests sparked by Israel’s war against Hamas in Gaza, stripping their federal funds and directing immigration officers to deport foreign student demonstrators, including those with green cards.
admin
