Airlangga: US Tariffs a Wake-Up Call for Indonesia to Reform
Jakarta. Coordinating Minister for Economic Affairs Airlangga Hartarto said Wednesday evening that the reciprocal tariff policy announced by US President Donald Trump should serve as a momentum for Indonesia to carry out critical economic reforms.
Speaking during the Investor Daily Roundtable talk show in Jakarta, Airlangga noted that the Indonesian government has already begun and will continue to take key measures in response to the US move. These include strengthening regional and international cooperation, as well as pursuing domestic reforms to address structural weaknesses such as low industrial competitiveness and limited household purchasing power.
He pointed out that Indonesia has been actively working toward accession to the Organisation for Economic Co-operation and Development (OECD) and joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These efforts, he said, have drawn positive attention from the US government during discussions with US Trade Representative Ambassador Jamieson Greer and Treasury Secretary Scott Bessent.
"Indonesia has been preparing itself for internal reforms, and we communicated these efforts to the US as well. These are best practices that other countries are also seeking. In our meeting with the US Treasury, Indonesia’s plan to join the OECD was also discussed," Airlangga told program host Enggartiasto Lukita.
He acknowledged that President Trump's reciprocal tariff policy has raised concerns globally.
Indonesia ranks eighth among the countries affected by the US tariff hike, facing a 32 percent increase. In total, around 60 countries are subject to reciprocal tariffs equivalent to half the rate they impose on US goods.
"That’s why President Prabowo Subianto has instructed us to respond swiftly, including proactive outreach to the US. Indonesia's early response was appreciated by the US, as we were among the first to react. That early engagement could provide an early-mover advantage," Airlangga said.
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