April 21, 2025 | 01:34 pm
TEMPO.CO, Jakarta - The Indonesian government has held negotiations in response to import tariffs imposed by U.S. President Donald Trump.
Representing Indonesia were Coordinating Minister for Economic Affairs Airlangga Hartarto, Deputy Finance Minister Thomas Djiwandono, and Deputy Chair of the National Economic Council Mari Elka Pangestu.
Airlangga stated that Indonesia had actively engaged with U.S. officials, including the Ministry of Trade and the U.S. Trade Representative (USTR), and is planning further talks with the U.S. Treasury.
"From our discussions, Indonesia is among the countries that received early responses. Other countries in talks with the U.S. include Vietnam, Japan, and Italy," Airlangga said in a press conference on Friday, April 18, 2025, as streamed via the Kemenko Perekonomian YouTube channel.
Here’s a summary of the results from Indonesia’s negotiation over Trump’s tariffs:
- Increase in Import of Several Commodities from the US
Airlangga stated that the Indonesian Government has put forward a proposal to boost imports of energy commodities from the U.S., including liquid petroleum gas (LPG), crude oil, and gasoline.
- Facilitation of Licensing for U.S. Companies in Indonesia
Indonesia will provide opportunities for U.S. companies that have been operating in the country through easier licensing. Indonesia also opens the option to provide incentives to these companies.
- Cooperation in the Mineral Sector
Airlangga also stated that Indonesia offers opportunities for cooperation with the U.S. in strategic minerals, which are important for defense systems and national strategic arrangements.
Then, there are also collaboration options in critical minerals that are important for the economy and national security.
- Streamlining Import Procedures for US Products
The government is also committed to simplify the import procedures for products from the U.S., including horticulture. Not only that, Indonesia also hopes that investments can be made through an approach that involves the exchange of products, services, or business information.
"In inter-country cooperation in the investment sector, Indonesia encourages investment to be made in a business-to-business manner," said Airlangga.
- Improvement of Human Resource Quality
Indonesia hopes that future cooperation with the United States will also cover efforts to improve the quality of its human resources. The government is additionally promoting collaboration in the digital economy sector.
- Beneficial Financial Services for the US
Indonesia is also offering enhanced financial services that are designed to provide benefits for the U.S.
"Of course, Indonesia also brings up financial services that are more inclined to benefit the United States," he stated.
- Balanced Tariff Implementation
According to Airlangga, both nations are aligned in their desire for fair tariff practices. He emphasized that Indonesia expects the U.S. to apply balanced tariffs on key Indonesian exports.
"So, if the United States has been given balanced tariffs, then Indonesia also hopes that 20 leading Indonesian products exported to the United States will also be given balanced tariffs. And these tariffs should not be higher than those of Indonesia's competitors," said Airlangga.
He added that Indonesia has submitted various documents in response to non-tariff measures (NTMs) that could disrupt trade flows.
- Improvement of TKDN Regulations
Airlangga also shared that, following directives from President Prabowo Subianto, Indonesia will revise regulations concerning the Domestic Component Level (TKDN).
He explained that the U.S. government has requested changes to the TKDN framework, particularly for certain non-import/export products.
- Trade Deregulation
He explained that the government is also preparing the formation of a deregulation task force. However, the team is not only prepared to face trade tariffs set by Trump.
- Formulation of a 60-Day Cooperation Framework
Furthermore, Airlangga said that both countries agreed to conclude negotiations within 60 days. According to him, from the results of the discussions between Indonesia and the U.S., there will be further follow-up meetings in two to three rounds.
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