The Indonesian government plans to provide tariff benefits to U.S. imports before starting new trade negotiations which will begin in July. The Indonesian Economy Minister Airlangga Hartarto announced that Jakarta would complete its preferred tariff treatment list for American goods before President Donald Trump’s tariff hike pause ends on July 3. The United States stands as Indonesia’s third-largest trading partner because the country recorded a trade surplus of $16.8 billion in 2024.
Airlangga declared that maintaining open dialogue with the goal of lowering trade barriers stands as the main objective. Airlangga made this statement after his meeting with U.S. Trade Representative Jamieson Greer at an OECD gathering in Paris.
The 32% tariffs imposed by Trump have negatively affected Indonesian exporters who produce apparel and electronics. The negotiations between Indonesia and the U.S. aim to increase U.S. energy imports by $10 billion while discussing digital trade and national security issues.
A trade ministry official expressed confidence that Indonesia’s “mature and measured” approach will establish a lasting partnership with Washington despite ongoing concerns about Trump’s trade policies.
The current talks represent a crucial time for Indonesia because its exporting industry faces significant challenges from changing U.S. trade directions. The country’s manufacturers continue to face uncertainty which may limit their growth potential during the upcoming months despite some trade barriers being removed.
