The Indonesian government has successfully secured a temporary delay on the reciprocal 32 percent tariff imposed by the United States (US) following intensive negotiations in Washington.
The negotiation team, led directly by Coordinating Minister for Economic Affairs Airlangga Hartarto, met with representatives from the U.S. Trade Representative (USTR) and the Department of Commerce to discuss the impact of President Donald Trump’s new tariff policy on Indonesian exports.
Airlangga Hartarto announced that Indonesia and the U.S. have agreed to conclude the negotiations within a 60-day timeframe.
“Indonesia and the U.S. have agreed to complete the negotiations within 60 days. The terms of reference and the negotiation format have also been finalized,” he stated during a virtual press conference from Washington.
He explained that the additional tariffs imposed by the U.S. have significantly impacted Indonesia’s exports, particularly textiles, footwear, furniture, and shrimp products.
“With an additional 10 percent, the total tariff reaches 47 percent. This severely undermines the competitiveness of our products, and some buyers have even requested tariff burdens to be renegotiated,” he said.
As an initial step to ease trade tensions, Indonesia has proposed several commitments, including increased purchases of U.S. energy products such as LNG and crude oil, agricultural products, and support for strategic U.S. investments in the mineral and digital economy sectors.
“The format is clear. There will be one to three additional rounds of negotiations, with a target to finalize everything within two months,” Airlangga added.
Minister of State Secretary Prasetyo Hadi noted that Indonesia’s negotiation team has worked intensively and in a highly coordinated manner.
“It has been very intense, particularly regarding the U.S. tariff policies,” he said.
He also emphasized that the process has had a positive impact on domestic regulatory consolidation and Indonesia’s efforts to expand export markets.
“We discussed many topics, including diversifying export destinations beyond the U.S.,” he continued.
Meanwhile, U.S. Secretary of Commerce Howard Lutnick appreciated Indonesia’s approach during the negotiations.
“We’ve seen concrete steps from Indonesia. This provides a strong foundation for continuing a mutually beneficial trade relationship,” he stated.
The Indonesian government hopes that the final outcome of these negotiations will lead to a fairer and more sustainable trade arrangement, while also securing long-term national export interests.
