April 25, 2025 | 11:27 pm
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati has unveiled five key steps that Indonesia will undertake during its negotiations with the United States. These measures include adjustments on import quota policies and enhancements to the Domestic Component Level (TKDN) obligations.
These steps are a direct response to the reciprocal tariffs imposed by the United States on several countries globally. The initial action taken by the Indonesian government involves refining tariff regulations. "That is, adjusting import duties for selected products from the US," Sri stated during a press conference following a periodic meeting of the Financial System Stability Committee (KSSK) on Friday, April 25, 2025.
The second measure the government will implement, according to her, is to increase imports from the U.S., particularly for commodities such as oil and gas, technological equipment, and agricultural products that are not domestically produced within Indonesia. "Third, undertaking reforms in the taxation and customs sectors," she elaborated.
The fourth step involves adjusting non-tariff measures. "This encompasses several points of concern, namely the Domestic Component Level (TKDN), import quotas, deregulation considerations for technical regulations in various Ministries/Agencies," she added.
Finally, Sri revealed that Indonesia will implement responsive and swift import trade remedy policies. Trade remedies are actions permitted by the World Trade Organization (WTO) for member countries to safeguard domestic industries from unfair trade practices or damaging import surges.
As previously reported, the U.S. has imposed a 32 percent tariff on Indonesian products. The U.S. government also highlighted tariff and non-tariff policies perceived as trade barriers, as outlined in the 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers published by the United States Trade Representative (USTR).
The list of concerns in the USTR report includes high Indonesian import tariffs, complex tax regulations and assessment processes, higher US alcohol excise taxes compared to domestic rates, import licensing or quota systems, the QRIS payment system, and TKDN obligations.
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