RI seeks fairer U.S. trade terms as Prabowo pushes for economic diplomacy

  • Published on 29/04/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

President Prabowo Subianto summoned Coordinating Minister for the Economy Airlangga Hartarto on Monday, April 28, 2025 to discuss the progress of Indonesia's economic negotiations with the United States. 

Airlangga said the meeting centered on efforts to secure more favorable import tariff rates for Indonesia, similar to those granted to countries like Vietnam and Bangladesh. He cited that Indonesia’s negotiating team is actively pushing for equal treatment in exporting key commodities to the U.S. market.

“So that we are on an equal playing field with other countries,” Airlangga said on Monday, April 28, 2025.

He noted that the diplomatic outreach has so far been met with a positive response from the U.S. government. The proposal, aimed at balancing the trade relationship between the two nations, has been acknowledged and welcomed.

“Their trade balance is around US$19 billion (Rp320 trillion), so we are offering more than US$19.5 billion in direct trade,” he said.

Airlangga also highlighted Indonesian investment in the United States, citing Indorama as an example. The company is set to invest US$2 billion in a Blue Ammonia project in Louisiana.

“Indorama is a multi-product company, starting from Purwakarta and expanding to various countries including the U.S. In the U.S., they have a PET plant that produces bottles for soft drinks,” he said.

The negotiations are currently bound by a Non-Disclosure Agreement (NDA), ensuring the details remain confidential.

“It will not be made public to the community or other parties,” Airlangga emphasized.

To support the negotiation process, President Prabowo has instructed the formation of three dedicated task forces: one for trade, investment, and economic security talks; another focused on expanding employment opportunities and mitigating layoffs; and a third tasked with streamlining policy regulations.

“With the negotiation task force, we can speed up talks with the US,” Airlangga said.

During a recent 12-day visit to the U.S., the Indonesian delegation engaged with key American stakeholders including the United States Trade Representative (USTR), Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent.

The delegation also held meetings with organizations such as the Semiconductor Industry Association, U.S. -ASEAN Business Council, and major corporations like Amazon, Boeing, Microsoft, and Google.

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