TEMPO.CO, Jakarta - The Indonesian government remains optimistic about its chances to negotiate trade tariffs with the United States. Haryo Limanseto, the Spokesperson of the Coordinating Ministry for Economic Affairs, said Indonesia has nearly a month to make tariff deals despite Trump announcing that Indonesia's 32 percent tariff will take effect on August 1, 2025.
"We don't consider it finalized, as the letter also said the tariff takes effect in August," he said at the ministry office on Wednesday, July 9, 2025.
Furthermore, Haryo added that Indonesia and the U.S. may continue the trade talks after August. The government has also fulfilled all the documents requested by the U.S. through its trade delegation.
Haryo mentioned that the U.S. also commended the proposal submitted by the Indonesian government, albeit the final decision lies with Trump.
Trump previously announced a 32 percent tariff for Indonesia in a letter addressed to President Prabowo Subianto on July 7, 2025.
The letter was uploaded through Trump's Truth Social account @realDonaldTrump on Tuesday, July 8, 2025. "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," wrote Trump 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. Trump also stated that Indonesia could be exempt from tariffs if it builds a factory in the U.S.
"This is not final. They (the United States) hope that we will not retaliate, which means the door remains open. They also want a positive response from us, and Indonesia certainly hopes to get a better deal," Haryo said.
Meanwhile, Finance Minister Sri Mulyani Indrawati emphasized that Indonesia positions itself as a non-aligned country that opens relations with all parties. "We maintain balance. This means in terms of our relationship with the United States, there are definitely aspects related to investment, trade, and strategic aspects," said Sri Mulyani when met at the Parliament Complex in Jakarta on Wednesday, July 9, 2025.
The State Treasurer mentioned that the Ministry of Finance, the Coordinating Ministry for Economic Affairs, and other related ministries are currently arranging the necessary steps to provide additional negotiation materials. Sri Mulyani stated that the government hopes Indonesia can obtain better terms when the tariffs take effect on August 1, 2025.
Syafruddin Karimi, an economist from the Department of Economics at Andalas University, suggested that the government should not be too permissive with Trump's policies. He views Trump's trade policy as selfish and exploitative toward its trading partners. "We should focus on national economic strength while developing non-traditional markets that treat us as equal partners in trade," said Syafruddin in a written statement quoted on Wednesday, July 9, 2025.
Syafruddin also mentioned that Indonesia does not need to fear additional tariffs for BRICS members. According to him, now is the right moment for Global South countries to reconsider a new fair global order.
Anastasya Lavenia Yudi contributed to the writing of this article
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