Indonesia's Tariff Negotiation with US to Continue for Three Weeks

TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto met with United States officials in Washington, D.C., on Wednesday, July 9, 2025. Indonesia and the US have agreed to intensify discussions and negotiations on tariffs over the next three weeks.

The meeting brought together the Indonesian delegation and US Secretary of Commerce Howard Lutnick, along with United States Trade Representative Jamieson Greer.

"We have reached a mutual understanding with the US regarding the progress of the negotiations. In the future, we will continue to strive to conclude these negotiations with a mutually beneficial approach," said Airlangga in an official statement released on Thursday, July 10, 2025.

Airlangga traveled to the US following President Donald Trump’s announcement of a new 32 percent tariff on Indonesian imports. He departed on July 8, 2025, after accompanying President Prabowo Subianto to the 2025 BRICS High-Level Conference in Rio de Janeiro, Brazil.

According to Airlangga, Indonesia was among the first countries to be received by the U.S. Government to address the continuation of the import tariff agreement. He emphasized that Indonesia seeks to strengthen its commercial relations with the United States.

"Last week, Indonesian companies in the agriculture and energy sectors signed a memorandum of understanding (MoU) with US companies for the purchase of prominent US products and to increase investment," he said.

Airlangga also noted the importance of optimizing cooperation in critical mineral processing. He explained that the US has expressed interest in developing stronger partnerships in this area. Indonesia holds significant reserves of key minerals such as nickel, copper, and cobalt.

President Trump’s tariff announcement was conveyed in a letter sent to President Prabowo on July 7, 2025. The new tariffs are set to take effect on August 1, along with similar tariffs targeting 13 other countries. These include Malaysia at 25 percent, Thailand 36 percent, Cambodia 36 percent, Myanmar 40 percent, Laos 40 percent, Japan 25 percent, South Korea 25 percent, Bangladesh 35 percent, Kazakhstan 25 percent, Tunisia 25 percent, Serbia 35 percent, Bosnia 30 percent, and South Africa 30 percent.

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