Trade Minister Admits Indonesia Has No Import Tariff Agreement with the US

Jakarta: Trade Minister Budi Santoso emphasized that until now there has been no agreement between Indonesia and the United States regarding the reduction of import tariffs for Indonesian export products. In the initial round of negotiations, the proposal from Indonesia was rejected by the United States.

"In the first stage (negotiation offer) we have conveyed our position and indeed until now there has been none. This means that there has been no agreement. We are still waiting for the next process," said the Trade Minister at the Indef 2025 Mid-Year Study National Seminar in Jakarta, Wednesday, July 2, 2025.

Budi emphasized the importance of maintaining Indonesia's export market in America, considering that Indonesia's trade surplus with the US last year reached USD14.34 billion or around IDR232.90 trillion (exchange rate of IDR16,246). Therefore, the government does not only rely on inter-governmental diplomacy, but also conducts an in-depth study of Indonesia's export structure to the US.

10 main export commodities to the US

His party has identified 10 main Indonesian export commodities to the United States (US), along with 10 main competing countries for each of these products. This step is considered important so that Indonesia does not lose out in terms of tariffs, especially when facing countries that already have more profitable trade agreements with the US.

"For example, Malaysia may get a lower reciprocal tariff," he said.

The Trade Minister hopes that the negotiation process with the US can be completed soon. He assessed that, on the one hand, the US also has an interest in gaining wider market access in Indonesia.

"Currently, we are still waiting for developments in the negotiation process. The most important thing is to prepare our position well," he said.

The Trade Minister also emphasized that anticipatory steps have been prepared, one of which is through strengthening diplomacy and forming a solid negotiation team.

"America often moves quickly and dynamically. Therefore, we must always be ready for possible changes in their attitudes or policies," he explained.

In addition to focusing on the US market, the government is also paying serious attention to expanding the export market to other countries and regions. This is done by accelerating the ongoing trade agreement negotiation process.

"That's what we're pushing for, and this year there's a lot of progress we can make," he added.