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Indonesia to Resume Tariff Negotiations with U.S. Following 32% Reciprocal Tariff

by Raidi
2025-07-11
in Economic
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Tariff Negotiations

U.S. President Donald Trump (Instagram/realdonaldtrump)

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Jakarta, Indonesia Sentinel — Indonesia is set to resume trade negotiations with the United States over the next three weeks, following Washington’s imposition of a 32% import tariff on all Indonesian products.

The upcoming talks were confirmed by Coordinating Minister for Economic Affairs Airlangga Hartarto, who has been appointed to lead the Indonesian delegation.

“We have reached a mutual understanding with the U.S. on the progress of the negotiations. Going forward, we will continue working toward a mutually beneficial agreement,” Airlangga said on Thursday (July 10), as reported by Antara.

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Airlangga recently met with U.S. Secretary of Commerce Howard Lutnick and United States Trade Representative (USTR) Chief Jamieson Greer in Washington, D.C. He described the meeting as a key step in strengthening bilateral trade ties.

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The negotiations cover a wide range of topics, including tariff and non-tariff barriers, digital economy, economic security, as well as commercial and investment cooperation. Both nations also acknowledged significant potential for collaboration in strategic sectors—particularly in critical minerals.

“The U.S. has shown strong interest in enhancing its partnership with Indonesia in critical minerals. We have substantial reserves of nickel, copper, and cobalt, and we need to maximize opportunities in downstream processing,” Airlangga noted.

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Earlier, Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has proposed increasing energy imports from the U.S. to help balance trade between the two countries.

“This is still being pursued by Coordinating Minister Airlangga. We’ve offered a trade balance in the energy sector worth around $15 billion,” said Deputy Energy Minister Yuliot Tanjung on Tuesday (July 8) in Jakarta.

He specified that Indonesia plans to import crude oil and liquefied petroleum gas (LPG), but not liquefied natural gas (LNG), citing sufficient domestic LNG supply that currently allows for export.

Indonesia has also invited U.S. investment in rare earth elements and critical mineral mining sectors. “We’ve identified these areas including rare earths and critical minerals as key sectors, and we’ve submitted the proposal to Minister Airlangga to be brought forward in the talks,” Yuliot said.

While the negotiations remain ongoing, Indonesia is among the first countries to be granted follow-up discussions with the U.S. government following President Donald Trump’s July 7 announcement of import tariffs targeting several nations.

Airlangga emphasized that the decision to move ahead with talks reflects both countries’ strong commitment to maintaining trade stability.

 

(Raidi/Agung)

Tags: Donald TrumpImport TariffIndonesia newsTariff
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