Jakarta – President Prabowo Subianto’s administration has achieved a strategic milestone in the international trade sector by successfully reducing the United States (US) import tariff on Indonesian exports from 32% to 19%.
This move is the result of intensive economic diplomacy amidst the rising trend of global protectionism, which has long been a significant barrier for developing countries in accessing international markets.
The Director of the Postgraduate Program in International Relations at Paramadina University, Ahmad Khoirul Umam, Ph.D., said that this achievement deserves appreciation considering that at the time of the negotiation process, Indonesia did not yet have a definitive Ambassador in Washington DC, while President Trump openly stated the threat of additional tariffs to BRICS member countries.
According to him, in such a situation, Indonesia’s ability to influence US tariff policy demonstrates strategic recognition of Indonesia’s position in the eyes of the world.
“This success isn’t just about tariff reductions, but also reflects the strength of Indonesia’s economic diplomacy in the face of global geopolitical pressures. It demonstrates that President Prabowo’s administration possesses strong negotiating skills, even when the diplomatic situation is less than ideal,” said Umam.
Furthermore, Umam stated that this is a strong signal of diplomatic trust between Jakarta and Washington. Such trust doesn’t emerge spontaneously, but rather results from a consistent, pragmatic approach to engagement, strengthening Indonesia’s position as a trading and geopolitical partner in the Indo-Pacific region.
Meanwhile, US President Donald Trump praised President Prabowo Subianto after the successful negotiations regarding import tariffs between the two countries. Trump stated that the US had reached an extraordinary agreement with Indonesia, the result of direct communication with Prabowo. Trump made this statement via his social media account, Truth Social.
“A great deal, for everyone, was just made with Indonesia. I dealt directly with their highly respected President,” Trump wrote.
Trump expressed his gratitude to Indonesia for this commitment, which aims to balance the US trade deficit.
“Thank you to the people of Indonesia for your friendship and commitment to balancing our trade deficit. We will continue to deliver for the American people and the Indonesian people!” he said.
The US decision to lower tariffs reflects recognition of Indonesia’s strategic role in the global supply chain and the effectiveness of the Prabowo administration’s negotiating approach.
This achievement not only strengthens the national export competitiveness but also sends a positive signal to other trading partners regarding Indonesia’s commitment to creating a fair and open trading climate.
