Indonesia and the United States have started a new era of mutually beneficial trade relations following a successful negotiation.

President Donald Trump announced that tariffs on Indonesian exports will be set at 19%, a significant reduction from the previous 32%.

This achievement marks a major success for Indonesia in preserving export market access.

The 19% tariff rate agreed upon is the lowest compared to several other countries, including Bangladesh (35%), Thailand (36%), Sri Lanka (30%), Malaysia (25%), Brunei (25%), Vietnam (20%), and the Philippines (20%).

This tariff reduction reflects Indonesia’s efforts to secure better trade conditions.

High-Level Negotiations Between Presidents Prabowo and Trump

The agreement was reached after intense negotiations between Indonesian President Prabowo Subianto and U.S. President Donald Trump.

The process followed Trump’s official letter on July 7, 2025, and continued with further talks on July 9 in Washington D.C.

The deal was finalized by both presidents as a sign of their shared commitment.

President Prabowo Subianto said, “I talked with President Donald Trump, and thankfully it was quite intense. We finally reached an agreement. We understand their interests, they understand ours, and we agreed to reduce the tariff from 32% to 19%”.

National Interests and Worker Protection at the Forefront

President Prabowo highlighted that the negotiation process prioritized Indonesia’s national interests.

He described President Trump as a tough negotiator and stressed the importance of ongoing dialogue to achieve a balanced agreement.

He further said, “All calculations have been carefully considered. We deliberated thoroughly. What matters most to me is my people. I must protect our workers”.

Ongoing Economic Partnership and Strategic Cooperation

Since April 2025, Indonesia has actively negotiated the agreement through Coordinating Minister for Economic Affairs Airlangga Hartarto and the negotiation team, who met with U.S. government representatives.

Indonesia plans to continue strengthening its economic partnership with the United States through ongoing dialogue and cooperation.

The government remains committed to maintaining stable trade relations worldwide via constructive and continuous economic diplomacy, which is vital to supporting Indonesia’s position in the global value chain and preserving market access.

PHOTO: KEMENKO PEREKONOMIAN

This article was created with AI assistance.