Indonesia Says US Welcomes Its Trade Proposal as Tariff Clock Ticks
Jakarta. Senior minister Airlangga Hartarto revealed Thursday that the US had welcomed Indonesia’s proposal for a “fair and square trade” ahead of President Donald Trump’s 32-percent tariffs deadline in July 9.
In early April, Trump unveiled wide-ranging tariffs on Washington’s trading partners, starting with a 10-percent universal duty. The Trump government will raise the tariffs to 32 percent for Indonesia as Washington seeks to improve its trade imbalance with Southeast Asia’s largest economy. The US also accused Jakarta of imposing unfair trade practices, which led to its substantial deficit. The 32-percent tariff was originally scheduled to enter into force in April before Trump decided to delay it until July 9, giving Jakarta some time to nudge Washington into changing its mind.
These negotiations have been underway over the past few months. With just two weeks left, Airlangga revealed he had just met with US Secretary of Treasury Scott Bessent virtually on Wednesday night.
“We discussed the follow-up of President Trump’s reciprocal tariff negotiations. Mr. Scott Bessent welcomes Indonesia’s proposal to push for a bilateral trade that is fair and square,” Airlangga posted on his social media account the next day.
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The politician did not go into details on the trade deal progress. Since the talks began, Indonesia has already unveiled intentions of increasing US imports, particularly energy and agricultural commodities. However, the gap in trade grows amid these discussions. Trade Ministry data showed Indonesia recorded a $5.4 billion surplus when trading with the US in January-April 2025, meaning that the country’s exports far exceeded the American goods that had entered its market. These figures showed that the surplus had climbed over 20 percent compared to the $4.4 billion posted in the first four months of 2024.
About two weeks after Trump’s tariff announcement, Airlangga led a top-level delegation to Washington DC for the tariff talks. Airlangga initially planned for another trip this month, but he later revealed the government had scrapped its plans to send the delegation again. The minister said that the proposal that Indonesia had put forward was already comprehensive.
The virtual meeting also followed Prabowo’s recent phone call with Trump. Cabinet Secretary Teddy Indra Wijaya said the two leaders discussed “the latest developments in both countries” without disclosing more details.
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