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Economy

Indonesia and US Advance Reciprocal Tariff Talks Ahead of August 1 Deadline

10 Jul, 2025
Indonesia and US Advance Reciprocal Tariff Talks Ahead of August 1 Deadline

Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, met with U.S. Secretary of Commerce Howard Lutnick and U.S (9/7).

Trade Representative Jamieson Greer in Washington, D.C. The meeting followed a letter from President Trump to President Prabowo Subianto on July 7, which outlined the reciprocal tariff rates for Indonesia to take effect on August 1, 2025.

This meeting marked an important step in the continued negotiations related to the reciprocal tariff policy introduced by the Trump administration.

Key Stakeholders and Timeline for Negotiations

Minister Airlangga acted swiftly after receiving the tariff details, traveling to Washington to meet with the U.S. officials responsible for tariff discussions.

Indonesia’s delegation was among the first countries formally received by the U.S. government for follow-up negotiations, reflecting a strong commitment to maintaining stable trade relations.

During the meeting, Airlangga expressed appreciation for the constructive negotiation process and noted progress on tariffs, non-tariff barriers, digital economy, economic security, as well as commercial and investment cooperation.

Indonesia and the U.S. agreed to intensify tariff negotiations within the next three weeks, leading up to the August 1 implementation date.

“We have a shared understanding with the U.S. regarding negotiation progress. We will optimize the coming three weeks to intensively negotiate and finalize the tariff talks with mutually beneficial principles,” said Minister Airlangga.

Focus Areas Beyond Tariffs: Trade, Investment, and Strategic Minerals

The negotiations also covered commercial and investment cooperation. Recently, Indonesian companies in energy and agriculture signed Memoranda of Understanding (MoUs) with U.S. companies and business associations to purchase key U.S. products and encourage investment growth.

Minister Airlangga highlighted potential cooperation in critical minerals. “The U.S. shows strong interest in advancing partnerships in critical minerals. Indonesia has large reserves of nickel, manganese, cobalt, and copper. We need to optimize cooperation and investment in processing these critical minerals together,” he explained.

Commitment to Strengthening Bilateral Economic Relations

Both Indonesia and the U.S. agreed to respect each other’s offers and requests in the tariff negotiations to establish reciprocal tariff policies and strengthen trade and investment cooperation.

Minister Airlangga was accompanied by Kemenko Economic Secretary Susiwijono Moegiarso, Deputies Edi Prio Pambudi and Ali Murtopo, and Assistant Deputy Irwan Sinaga during the meeting.



PHOTO: KEMENKO PEREKONOMIAN

This article was created with AI assistance.

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