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Indonesia will not retaliate against Trump tariff: Airlangga
Coordinating Economic Affairs Minister Airlangga Hartarto said in a statement that Indonesia would pursue diplomacy and negotiations to find mutually beneficial solutions after Trump announced sweeping global tariffs on Wednesday.
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Coordinating Economic Minister Airlangga Hartarto brief reporters on the development of 2024's third quarter gross domestic product (GDP) growth in his Jakarta office on Nov. 5, 2024. (JP/Deni Ghifari)
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ndonesia will not retaliate against US President Donald Trump's 32 percent trade tariff on Southeast Asia's largest economy, its senior economic minister said on Sunday in the government's first response to the levy.
Coordinating Economic Affairs Minister Airlangga Hartarto said in a statement that Indonesia would pursue diplomacy and negotiations to find mutually beneficial solutions after Trump announced sweeping global tariffs on Wednesday.
"The approach was taken by considering the long-term interest of bilateral trade relation, as well as to maintain the investment climate and national economic stability," Airlangga said, adding that Jakarta will support potentially impacted sectors, such as apparel and footwear industry.
Trump's tariff on Indonesia, one of six hard-hit Southeast Asian countries is set to take effect on Wednesday.
The Indonesian government will gather inputs from businesses on Monday to help formulate strategy to address the US tariff, and will find ways to increase trade with European countries as an alternative to the US and China, Airlangga said.
Jakarta has said it would send a high-level delegation to the US for direct negotiations with the government.
Indonesia posted a $16.8 billion trade surplus last year with the US, which was its third-biggest export destination, receiving shipments worth $26.3 billion in 2024, according to Indonesian government data.
Indonesia’s main exports to the US include electronics, apparel and clothing, and footwear.
Indonesia's main business lobby has backed Jakarta to negotiate better terms with Washington after US President Donald Trump imposed hefty tariffs on goods from the country.
The tariffs were just "an opening statement", said Indonesian Chamber of Commerce and Industry (Kadin) chair Anindya Novyan Bakrie in a statement late Thursday.
"This means the door for negotiation is still open. Intensive communication with the US government... is the right move."
Last week, Airlangga called for the 10-member Association of Southeast Asian Nations (ASEAN) to coordinate its response to the tariffs.
"Synchronization between ASEAN countries is needed, because of the 10 ASEAN countries, all are affected by the US reciprocal tariff policy, so it is necessary to collectively build communication and engagement with the US Government," he said in a statement on Friday.
