THE EDITOR – The Indonesian government will soon announce its response to the United States’ decision to maintain a 32 percent import tariff on Indonesian goods, Finance Minister Sri Mulyani Indrawati said on Tuesday.
“We will announce our response later on,” She said in Antara on 8 July 2025.
She confirmed that Coordinating Minister for Economic Affairs Airlangga Hartarto would again travel to the US to continue negotiations.
Deputy Finance Minister Anggito Abimanyu said more time is needed to assess the potential economic impact, noting that the policy has not yet been implemented.
“It is not effective yet. I cannot say anything as nothing is final,” he remarked.
He welcomed the government’s continued efforts to pursue dialogue with the US.
Ministry spokesperson Haryo Limanseto confirmed Hartarto’s departure, reiterating Indonesia’s firm stance on defending its trade interests.
“The US has shown some willingness to revisit the decision. We intend to seize this opportunity to safeguard our national interests,” he said.
In a letter dated July 7 and addressed to President Prabowo Subianto, US President Donald Trump confirmed the decision to keep the 32 percent tariff in place, despite ongoing talks.
“Please understand that the 32 percent figure is far less than what is needed to eliminate the trade deficit disparity we have with your country,” Trump wrote. He posted the letter on his Truth Social account.
Trump suggested that the tariff rate could still be adjusted if Indonesia agrees to further open its market to US products, revise its trade policies, or begin manufacturing goods in the US.
Meanwhile, other Southeast Asian countries have also seen shifts in US tariff rates. Thailand and Cambodia now face additional import tariffs of 36 percent — adjusted from previous rates of 36 and 49 percent — while Malaysia’s tariff has increased slightly, from 24 to 25 percent.
Indonesia pushes for trade talks after US maintains 32 pct tariff
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, is set to depart for the United States on Tuesday to continue negotiations over Washington’s planned 32 percent reciprocal tariff on Indonesian goods.
“Following the US government’s statement on its latest import tariff policy, Minister Hartarto will travel to Washington, D.C., after previously accompanying President Prabowo Subianto in Brazil,” said Haryo Limanseto, the ministry’s spokesperson.
Hartarto is expected to meet with US officials to discuss the tariff, which is scheduled to take effect on August 1.
Limanseto emphasized that Indonesia remains firm in its efforts to secure more favorable terms.
“The US has signaled some openness to revisiting the decision. We intend to maximize this opportunity to protect our national interests,” he said.
US President Donald Trump recently confirmed the decision to maintain a 32 percent import tariff on Indonesian products — unchanged from the rate announced in April — despite ongoing negotiations.
“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 stated in a letter from the White House dated July 7 and addressed to Indonesian President Prabowo Subianto.
Trump said the move was aimed at addressing the long-standing US trade deficit with Indonesia.
“Please understand that the 32 percent figure is far less than what is needed to eliminate the trade deficit disparity we have with your country,” Trump said in the letter.
He warned that if Indonesia retaliates with higher tariffs, the US would respond in kind — matching the increase and adding the existing 32 percent.
However, Trump offered an alternative path, saying Indonesia would be exempt from the tariffs if it began manufacturing products in the US. He promised fast-track approvals for any such investments.
He also hinted at the possibility of revising the tariff rate if Indonesia makes its market more accessible to US goods and services.
Other Southeast Asian nations have seen changes to their tariff status. Thailand and Cambodia now face additional import tariffs of 36 percent — adjusted from previous rates of 36 and 49 percent, respectively — while Malaysia’s rate has risen slightly from 24 to 25 percent.
