Apr 07, 2025 Leave a message

Indonesia Will Not Retaliate Against Trump Tariffs

According to reports from Reuters and Bloomberg, on April 6, Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that Indonesia will not take retaliatory action against the 32% trade tariffs imposed by U.S. President Donald Trump. This marks the Indonesian government's first official response to the reciprocal tariffs introduced by the United States.

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In a statement, Airlangga Hartarto said that following Trump's announcement of global reciprocal tariffs, Indonesia would seek a mutually beneficial resolution through diplomacy and negotiation. "This approach takes into account the long-term interests of Indonesia–U.S. bilateral trade relations, while also maintaining a favorable investment climate and national economic stability," Hartarto said. He also noted that Indonesia would support potentially affected industries such as the apparel and footwear sectors.

Indonesia is reportedly one of six Southeast Asian countries impacted by Trump's tariffs. The reciprocal tariffs on Indonesian goods are expected to take effect at 12:01 a.m. Eastern Time on April 9. Hartarto added that the Indonesian government would gather feedback from businesses on April 7 to help develop strategies in response to the U.S. tariffs, and would also explore ways to increase trade with European countries as an alternative to relying on the U.S. and China.

In addition, Indonesia's Coordinating Ministry for Economic Affairs issued a statement saying that President Prabowo Subianto has instructed the cabinet to streamline regulatory systems, including reducing non-tariff barriers, following the U.S. announcement of reciprocal tariff measures against Indonesia.

The ministry revealed that the Indonesian government is currently assessing the impact of Trump's tariff policy, which is expected to affect export-dependent industries such as textiles, electronics, and palm oil. The ministry stated: "This move aims to enhance competitiveness, uphold market confidence, and attract investment to sustain economic growth momentum."

Indonesia also announced plans to send a high-level delegation to the United States for direct negotiations with the U.S. government. According to Indonesian government data, the country recorded a $16.8 billion trade surplus with the United States last year. The U.S. is Indonesia's third-largest export market, with exports totaling $26.3 billion in 2024, primarily consisting of electronics, apparel, and footwear.

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