Indonesia's Finance Ministry Addresses Trump's 32% Tariff, Says Talks Ongoing

4 hours ago 4

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati has responded to U.S. President Donald Trump’s decision to maintain a 32 percent tariff on Indonesian products. She stated that the Ministry of Finance will coordinate with other ministries, including the Coordinating Ministry for Economic Affairs led by Airlangga Hartarto.

Sri Mulyani made the remarks following a plenary session at the House of Representatives on Tuesday, July 8, 2025.

"Let's respond on Tuesday, let Menko (Airlangga Hartarto) handle it," she said.

Deputy Finance Minister Anggito Abimanyu said that he had yet to assess the potential impact of Trump’s latest decision.

"It's not effective yet, I don't know what will happen later. I can't comment because I haven't received the final details," he said at the same venue.

Anggito suggested that the negotiation process is still ongoing. Airlangga Hartarto is currently en route to the United States and is expected to arrive in Washington D.C. on Tuesday, July 8, local time, to discuss the implementation of the tariff.

Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, stated that after the U.S. government issued its statement regarding the new tariff policy for Indonesia, Airlangga proceeded to Washington D.C. He had previously accompanied President Prabowo Subianto to Brazil.

On July 7, President Trump sent a letter to President Prabowo outlining the tariff decision. "Starting on August 1, 2025, we will charge Indonesia a tariff of only 32 percent on any and all Indonesian products sent into the United States, separate from all sectoral tariffs," Trump wrote.

Trump said the 32 percent tariff is still relatively low compared to what is needed to offset the U.S. trade deficit with Indonesia. He also announced a delay in the tariff implementation deadline for negotiations with trading partners, moving it to August 1, 2025.

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