The Palace Denies Any Link Between Trump's Import Tariffs and Indonesia's BRICS Membership

4 hours ago 1

TEMPO.CO, Jakarta - Indonesian State Secretariat Minister Prasetyo Hadi stated that there is no connection between U.S. President Donald Trump's imposition of import tariffs and Indonesia's membership in BRICS. Prasetyo explained that the U.S. import tariffs are not only applied to Indonesia but also to other countries.

"In addition, the imposition of the 32 percent import tariff was also announced well before Indonesia became a full member of BRICS," said Prasetyo at the Presidential Palace complex in Jakarta on Friday, July 11, 2025. "In fact, there is no connection between the import tariff and BRICS membership," said the Presidential spokesperson.

BRICS is a group of countries including Brazil, Russia, India, China, and South Africa. It aims to enhance economic and political cooperation among its member states and serve as a counterbalance to the economic power of developed countries.

President Donald Trump issued a threat of an additional 10 percent tariff on BRICS member countries as their leaders, including Indonesia, gathered in Rio de Janeiro, Brazil. BRICS convened for its annual summit on Sunday, July 6, 2025. At that time, Indonesia was attending its first BRICS Summit as a full member.

Donald Trump described the economic policies of the BRICS group as anti-United States. "There will be no exceptions to this policy," Trump wrote on his social media platform, Truth Social, on Sunday, July 6, 2025.

In a separate post, President Trump announced that tariff notices or trade agreements with various countries around the world would begin to be sent on Monday, July 7, 2025, at 12:00 p.m. Washington time or 11:00 p.m. Western Indonesian Time (WIB).

In a letter dated July 7, 2025, addressed to Indonesian President Prabowo Subianto, Trump imposed a 32 percent import tariff on Indonesian products. The letter was posted by Trump on the social media platform Truth Social on Tuesday, July 8, 2025, Indonesian time. "Starting 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 in the letter.

According to Trump, the 32 percent tariff is still relatively small compared to the amount needed to balance the trade deficit with Indonesia. Previously, the United States Trade Representative (USTR) claimed that U.S. trade with Indonesia saw a deficit of up to US$17.9 billion in 2024. This figure rose by 5.4 percent, or US$923 million, from 2023.

Trump also stated that he would raise import tariffs if Indonesia decided to increase its own. He further outlined a condition for Indonesia to avoid the tariffs. President Trump declared that Indonesia could be exempt from import tariffs if it agreed to establish production facilities in the United States. “There will be no tariffs if Indonesia, or companies within your Country, decide to build or manufacture product within the United States,” Trump wrote in an official letter on White House letterhead addressed to President Prabowo Subianto.

Trump even stated that the United States would ensure all processes move quickly—within a matter of weeks—if Indonesia decides to begin production in the U.S. Alongside the tariff announcement, Trump also announced that the implementation of the tariffs would be postponed until August 1, 2025. Previously, Trump had decided to delay the enforcement of the U.S. reciprocal tariffs for 90 days, until July 9, 2025.

Coordinating Minister for the Economy Airlangga Hartarto is currently traveling to Washington, D.C., United States, this week to negotiate the tariff. He headed straight to the U.S. from Rio de Janeiro after attending the BRICS Summit in Brazil on July 7, 2025.

Spokesperson for the Coordinating Ministry for the Economy, Haryo Limanseto, explained that the main strategy is to convince the United States that Indonesia is a strategic trade partner. “In this latest strategy, the Coordinating Minister will emphasize that Indonesia is a highly strategic country due to its abundant natural resources,” said Haryo at a press conference at the Coordinating Ministry for the Economy office, Lapangan Banteng, Jakarta, on Wednesday, July 9, 2025.

Hendrik Yaputra, Anastasya Lavenia Yudi, and Ilona Estherina contributed to this article

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