Indonesia Seeks Tariff Relief Through Revived U.S. Trade Agreement
- AP Photo
Jakarta, VIVA – Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, met with the United States Ambassador to Indonesia, H.E. Kamala S. Lakhdhir, on Tuesday (Apr 8).
The meeting focused on the import tariff policy imposed by the United States.
Minister Hartarto stated that the Indonesian government has undertaken various negotiation efforts to support the interests of both nations and balance the trade deficit.
This comes in response to the 32 percent import tariff set to take effect on April 9, 2025—unless further negotiations can be reached.
“Indonesia will prioritize negotiations and avoid retaliatory measures, in line with other ASEAN countries. We aim to pursue this through the revitalization of the Indonesia-U.S. Trade and Investment Framework Agreement (TIFA), which has been in place since 1996,” the minister explained on Wednesday (Apr 9).
He added that the government will implement several strategic policies as part of its negotiation approach to address the U.S. tariff.
These include the deregulation of Non-Tariff Measures (NTMs) by relaxing Local Content Requirements (TKDN) in the ICT sector for U.S. companies such as GE, Apple, Oracle, and Microsoft; evaluating restricted goods policies (Lartas); and accelerating the halal certification process.
Both countries also discussed policy measures to balance their trade of goods.
Menko Perekonomian Airlangga Hartarto di Sarasehan Ekonomi bersama Presiden
- Setpres
The minister emphasized that the Indonesian government will prepare both fiscal and non-fiscal incentives to encourage imports of U.S. products while maintaining the competitiveness of Indonesian exports to the U.S., all while prioritizing national interests.
In response, Ambassador Lakhdhir stated that amid negotiation efforts by other nations impacted by President Trump's tariff policy, the U.S. Embassy in Jakarta is committed to facilitating Indonesia’s communication and negotiation process.
“We’ve been in contact with the Secretary of Commerce and the USTR regarding Indonesia’s plan to initiate negotiations, and we’re ready to coordinate meetings with other key stakeholders if needed,” the Ambassador said.
