‘Early Bird Gets the Worm’: Airlangga Reflects on Swift Trade Talks with US
Jakarta. Indonesia moved swiftly to engage the United States over sweeping new tariffs, with Economic Chief Airlangga Hartarto saying early diplomatic efforts could secure Jakarta a strategic edge amid escalating trade tensions.
Airlangga shared insights from recent meetings with American officials on Wednesday evening in his first media interview since returning from Washington.
Indonesia dispatched a delegation to Washington less than a week after US President Donald Trump, on April 2, announced significant tariff increases targeting countries with which the US has trade deficits. Under the new policy, Indonesian goods face a 32 percent tariff -- on top of an existing 10 percent baseline tariff.
In a swift response, the Indonesian government sent letters to the US Trade Representative (USTR), the Secretary of Commerce, and the Secretary of the Treasury, outlining its stance and requesting dialogue, Airlangga said.
These letters and accompanying documents were sent even before Trump announced a 90-day delay on the tariff implementation for all countries except China.
Foreign Minister Sugiono was the first to arrive in Washington, meeting with US Secretary of State Marco Rubio. He was later joined by a delegation of economic ministers led by Airlangga.
From April 16 to 23, Indonesian officials held separate meetings with US Secretary of Commerce Howard Lutnick, US Trade Representative Jamieson Greer, and Treasury Secretary Scott Bessent.
“President Prabowo Subianto gave clear directives to engage with the US without delay. The US appreciated our prompt response, which gave us an early-mover advantage,” Airlangga said at the Investor Daily Roundtable in Jakarta.
Japan and Vietnam also sent negotiation teams to Washington within a week of Trump’s announcement.
“Vietnam faces a more complex situation, as the US accounts for 30 percent of its total exports, compared to 12 percent for Indonesia,” Airlangga noted.
“Indonesia is relatively insulated from the new US tariffs,” he said with a smile. “Our footwear products were already subject to tariffs of up to 20 percent before the hike -- higher than comparable Vietnamese exports. However, the rates have now gone even higher.”
Airlangga emphasized that the discussions were reciprocal in nature, with Indonesia proposing a new framework for fair and mutually beneficial bilateral trade.
“We are simply asking for a level playing field, especially when compared to how the US treats its other ASEAN trade partners,” he said.
Indonesia’s trade relationship with the US is currently governed by the Trade and Investment Framework Agreement (TIFA), which dates back to the Soeharto era, Airlangga added.
“Indonesia is defending its national interests while pursuing a win-win solution,” Airlangga told Enggartiasto Lukita, executive chairman of B-Universe Media Holdings.
The US is Indonesia’s second-largest export market, and many Indonesian jobs depend on this trade relationship, he said.
Indonesia is seeking fairer treatment for several key export categories, especially labor-intensive goods such as footwear, textiles, furniture, and shrimp. These products fall within the highest tariff brackets and risk losing their competitiveness in the US market.
In return for tariff relief, Indonesia has proposed trade concessions, including increased imports of US liquefied petroleum gas, gasoline, soybeans, soybean meal, and capital goods, Airlangga explained.
Although no binding agreement was reached, the discussions laid a solid foundation for future technical negotiations on Indonesia-US trade, he said.
Regional Approach
As Southeast Asia braces for the fallout from Washington’s sweeping tariff hikes, Indonesia is positioning itself as a proactive negotiator.
At the time of Trump’s tariff announcement, Airlangga was already in Malaysia, working to coordinate a regional response through ASEAN. Malaysia currently chairs the regional economic bloc.
“Shortly after the US announcement, I had the opportunity to discuss this informally with Prime Minister Anwar Ibrahim,” Airlangga said.
“ASEAN’s collective stance is to respond jointly to the US unilateral move. We remain committed to upholding the fundamental rules of trade as governed by the WTO.”
Tags: Keywords:Related Articles
How Indonesian Traditions Can Drive Local Economy
The Indonesian government sees opportunities in driving the local economy by preserving local traditions.Indonesia in Talks with US for 0% Tariff on Palm Oil
Indonesia is in talks with the US to have its palm oil exempted from the latest tariff measure.Government Says Perry Warjiyo's Resignation Won't Disrupt Monetary Policy
The government says Bank Indonesia's policies and coordination will continue unchanged despite Perry Warjiyo's resignation.Indonesia Hopes US Tariff-Free Promises Stay as New Levy Hits
The US has opened up the possibility of tariff reductions for a certain volume of Indonesian textiles in the latest trade measure.Gov't to Launch International Financial Center in Jakarta Before Expanding to Bali
Indonesia will launch its international financial center in Jakarta before expanding the project to Bali within two to three years.Indonesia to Exempt China, Australia, Canada from Export FX Retention Rule
Previously, only the United States was exempt from the policy.Indonesia Welcomes S&P's Investment-Grade Rating Affirmation
S&P maintained Indonesia's long-term sovereign credit rating at BBB and its short-term rating at A-2, both with a stable outlook.Government Stays Firm in Making Bali New International Financial Center
Indonesia will establish a financial center in Bali with tax breaks and a special legal framework to attract foreign capital.Indonesia's IPO Momentum Signals Strong Business Confidence and a Resilient Economy
Indonesia's capital market stays resilient as IPO activity continues and six more companies prepare to go public.Indonesia Eyes Waste-to-Energy Boom With Hundreds of Projects Still Untapped
Indonesia says hundreds of cities remain untapped for waste-to-energy projects, creating major investment opportunities.The Latest
Prabowo Says South Korea's Lee Asked Indonesia to Help Open Dialogue With North Korea
President Prabowo Subianto says South Korea's Lee Jae Myung asked Indonesia to help open dialogue with North Korea.Pullman Hotel Fire in Jakarta Suspected to Stem From Electrical Fault
Police will deploy a forensic team to investigate a fire at Pullman Hotel in West Jakarta, with an electrical fault suspected as the cause.Pertamina Slashes Prices of Three Fuels From Aug. 1
Pertamina cut prices for three non-subsidized fuels from Aug. 1.Trump Too Stubborn to Rejoin Paris Agreement: Indonesian Minister
Indonesia's Environment Minister Jumhur Hidayat says other countries should deal with Trump quitting the Paris Accord.Indofood Sales Rise 9% as Rupiah Weakness Hits First-Half Profit
Indofood’s first-half sales rose 9%, but net profit fell 19% as rupiah weakness increased unrealized foreign-exchange losses.Most Popular
