Prabowo signals further talks on U.S. tariff deal, eyes 0 percent import duty

  • Published on 17/07/2025 GMT+7

  • Reading time 2 minutes

  • Author: Renold Rinaldi

  • Editor: Imanuddin Razak

President Prabowo Subianto has indicated of the government’s plan to reopen negotiations with the United States to further reduce tariffs on Indonesian exports, following Washington’s recent decision to impose a 19 percent import duty on Indonesian goods.

Prabowo welcomed the progress made, but expressed dissatisfaction with the current terms.

“Would I be satisfied? Zero percent would be better,” Prabowo told reporters at Halim Perdanakusuma Air Base, East Jakarta on Wednesday, July 16, 2025.

The president further indicated his ambition for a tariff-free arrangement with the United States.

The president acknowledged that the negotiations with U.S. President Donald Trump were intense and challenging. “I am still negotiating,” Prabowo said. “But I admit, he [Trump] is a tough negotiator,” Prabowo cited.

Earlier, Trump announced a new trade deal with Indonesia that included a 19 percent tariff on Indonesian imports, down from the previously proposed 32 percent. He claimed that under the deal, U.S. exports to Indonesia would face no duties or non-tariff barriers.

“They [Indonesia] pay 19 percent, and we pay nothing,” Trump told reporters at the White House, as quoted by Bloomberg on Tuesday, July 15, 2025. He also said the agreement would grant the U.S. “full access” to the Indonesian market.

Trump said Indonesia had agreed to purchase US$15 billion worth of U.S. energy products, USTrump said Indonesia had agreed to purchase $15 billion worth of U.S. energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft, mostly wide-body 777 jets.

Trump said Indonesia had agreed to purchase $15 billion worth of U.S. energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft, mostly wide-body 777 jets, $4.5 billion in agricultural goods, and 50 Boeing aircraft, mostly wide-body 777 jets.

While the 19 percent tariff is a reduction, Indonesian officials see the move as only a partial victory, and the administration appears committed to pursuing further talks to level the trade playing field.

The United States remains one of Indonesia’s largest non-oil export destinations, with products such as palm oil, rubber, footwear, and electronics making up a significant portion of trade.

It is unclear when Prabowo’s team will initiate a new round of talks, but the president’s comments reflect a growing determination to secure more favorable terms in bilateral trade with Washington.

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