Indonesia seeks diplomatic solutions to U.S. tariffs, prioritizes negotiation and adjustment

  • Published on 10/04/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

airlangga-hartarto

Coordinating Minister for the Economy, Airlangga Hartarto, met with U.S. Ambassador to Indonesia, Kamala S. Lakhdhir on Tuesday, April 8, 2025 discussing Indonesia's steps in responding to U.S. President Donald Trump's new import tariff policy.

Airlangga said the government is preparing fiscal and non-fiscal incentives to encourage imports of U.S. products and maintain the competitiveness of Indonesian export products to that country.

"Indonesia will prioritize the negotiation path and not take retaliatory actions, in line with other ASEAN countries," Airlangga said on Wednesday, April 9, 2025.

The government is also seeking to revitalize the Indonesia-U.S. Trade and Investment Framework Agreement (TIFA) cooperation agreement that has been in effect since 1996.

Airlangga said Indonesia will also deregulate non-tariff measures (NTMs) by relaxing the domestic content level (TKDN) in the information and communication sector from the U.S., such as GE, Apple, Oracle and Microsoft products.

Meanwhile, the measures taken by the government are like evaluating the prohibition and restriction policies to accelerate the halal certification process.

All of these steps are a form of response to the U.S. reciprocal tariff of 32 percent for products from Indonesia, unless it can be negotiated further.

Responding to this, Ambassador Kamala said that the U.S. Embassy in Jakarta is committed to facilitating communication and negotiation efforts that will be carried out by the Indonesian government.

"We have communicated with the Secretary of Commerce and the United States Trade Representatives (USTR) regarding the Indonesian government's plan to negotiate, and we are ready to arrange a meeting plan with other strategic parties if needed," Ambassador Kamala said on Tuesday, April 8, 2025.

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