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RI presses on to negotiate with US as tariff deadline looms

Trump said he would “consider an adjustment” if Indonesia eliminates its tariff and nontariff barriers.

Ruth Dea Juwita (The Jakarta Post)
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Thu, July 10, 2025 Published on Jul. 9, 2025 Published on 2025-07-09T18:57:47+07:00

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Coordinating Economic Ministry spokesman Haryo Limanseto addresses media in his office on Wednesday. Indonesia is pushing to continue trade talks with the United States as it seeks to lower a 32 percent tariff imposed by Washington. Coordinating Economic Ministry spokesman Haryo Limanseto addresses media in his office on Wednesday. Indonesia is pushing to continue trade talks with the United States as it seeks to lower a 32 percent tariff imposed by Washington. (JP/Ruth Dea Juwita)

I

ndonesia is set to continue its efforts to secure a trade deal with the United States ahead of a new Aug. 1 deadline despite Washington’s persistent threat to impose steep tariffs. Jakarta hopes to avert the upcoming 32 percent tariff on its exports by emphasizing its strategic importance in global trade and vast natural resource potential.

Coordinating Economic Minister Airlangga Hartarto, who has been leading the negotiations since the tariff announcement in April, embarked on a three-day visit to Washington starting Tuesday, according to ministry spokesperson Haryo Limanseto.

Airlangga is scheduled to meet with US Commerce Secretary Howard Lutnick and also plans to hold talks with Treasury Secretary Scott Bessent and US Trade Representative (USTR) Jamieson Greer.

The diplomatic push follows a letter from US President Donald Trump to President Prabowo Subianto, warning that Indonesia will face a 32 percent tariff on all exports unless a trade and investment deal is reached by the deadline.

The tariff rate has remained unchanged since April’s announcement, despite Jakarta’s repeated attempts to sweeten the deal and win over Trump with a series of concessions. It is one of the highest among Southeast Asian nations, with Malaysia facing a 25 percent tariff threat and Vietnam having had its rate reduced to 20 percent.

Haryo said the letter, which arrived ahead of the previous July 9 negotiation deadline, caught Jakarta off guard.

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“We see that the US government now approaches the negotiations from a global perspective, rather than on a country-by-country basis,” he told a press briefing on Wednesday. “We have submitted all the required documents and agreed on the negotiation framework, but the final decision rests with Trump.”

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