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Economy

Indonesia to Negotiate US Reciprocal Tariff Delay in Washington

16 Apr, 2025
Indonesia to Negotiate US Reciprocal Tariff Delay in Washington

The United States government has delayed the enforcement of its Reciprocal Tariff Policy for 90 days, pushing its implementation to June 9, 2025. This follows the initial announcement by President Donald Trump that drew immediate reactions from multiple nations, including Indonesia.

Under President Prabowo Subianto’s directive, the Indonesian government will send a high-level delegation to Washington, D.C., from April 16 to 23, 2025. The delegation will engage with key U.S. stakeholders, including the U.S. Trade Representative (USTR), the Secretary of Treasury, and the Secretary of Commerce.

Airlangga: “Indonesia Among the First to Be Invited”

“Indonesia is one of the first countries invited to Washington. This invitation reflects what has already been conveyed by the Indonesian Government,” said Coordinating Minister for Economic Affairs Airlangga Hartarto during a coordination meeting on April 14.

Minister Airlangga also confirmed that formal letters have been submitted to the USTR, the Secretary of Commerce, and the Secretary of Treasury. These communications were followed by the preparation of a comprehensive non-paper proposal that includes detailed positions on tariffs, non-tariff measures (NTMs), trade and investment cooperation, and financial sector matters.

Strategic Focus: Balancing Trade and Investment Talks

Indonesia plans to address the trade delta between the two countries by proposing the purchase of select U.S. products. In parallel, the government will also raise discussions concerning U.S. corporate investments in Indonesia, alongside Indonesian companies planning to expand operations in the United States.

The delegation aims to leverage this visit to reinforce bilateral trade ties while navigating the challenges posed by the tariff policy.

Parallel Policy Measures: Employment and Deregulation Task Forces

Beyond the U.S. visit, the Indonesian government is also advancing domestic strategies in line with President Prabowo’s broader economic agenda. According to Minister Airlangga, discussions during the same coordination meeting also covered the finalization of two presidential task forces—one on employment (PHK Task Force) and another on deregulation.

“These initiatives are moving in parallel. We aim to issue these policies soon, focusing on low-hanging fruit through practical policy packages,” Airlangga stated.

The meeting was also attended by the Minister of Trade, the Chairman of the Financial Services Authority (OJK), the Deputy Foreign Minister, the Deputy Investment Minister, and the Vice Chair of the National Energy Council (DEN).



PHOTO: EKON.GO.ID

This article was created with AI assistance.

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