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Indonesia negotiating lower US tariffs for some goods

by
August 4, 2025
in INDONESIA INDIA NEWS
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Indonesia negotiating lower US tariffs for some goods
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Jakarta (ANTARA) – Trade Minister Budi Santoso has informed that the Indonesian government is still negotiating with United States President Donald Trump’s administration to secure lower tariff rates for certain products that are not manufactured in the US.

However, he said that he could not yet disclose the specific commodities that are being discussed.

Speaking at a press conference on Indonesia’s trade performance in the first half of 2025 at his office in Jakarta on Monday, the minister underlined that the 19-percent tariff imposed on Indonesian products could change by September 1 this year.

“It is true that the 19-percent reciprocal tariff will take effect seven days from July 31 (2025), but negotiations are still ongoing. Hopefully, we will reach a conclusion before September 1,” Santoso said.

Data from Statistics Indonesia (BPS) shows that the US was the largest contributor to Indonesia’s trade surplus during the January–June 2025 period, with the value of its contribution pegged at US$9.92 billion.

During the same period, Indonesia’s non-oil and gas exports to the US amounted to US$14.79 billion, making the US its second-largest export destination after China and ahead of India.

Top products exported to the US included machines and electric tools (US$2.80 billion), footwear (US$1.29 billion), and clothes and related accessories (US$1.28 billion).

Earlier, on July 31, President Trump signed a decree formalizing tariff rates ranging between 15 and 41 percent on products imported by the US from more than 60 countries, including Indonesia.

The following day, Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the 19-percent import duty on Indonesian products will take effect on August 7.

He added that Indonesia’s rate is among the lowest in Southeast Asia, with the exception of Singapore, which secured a 10-percent rate from the US.

Moreover, he said that Indonesia has secured tariff exemptions for certain products, including copper concentrates and copper cathodes.

Related news: Indonesia eyes US market edge as 19 percent tariff takes effect Aug 7

Related news: Ministry asks apparel industry to boost exports to US

Related news: RI-US tariff deal brings relief for labor-intensive sectors: govt

Translator: Maria C, Tegar Nurfitra
Editor: Azis Kurmala
Copyright © ANTARA 2025



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Tags: goodsIndonesianegotiatingtariffs
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