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Indonesia Awaits US Feedback on Tariff as Washington Deals with Trump's Big Bill

Jayanty Nada Shofa
July 2, 2025 | 1:21 pm
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US President Donald Trump points to a reporter to take a question as he speaks to the media in the briefing room of the White House on June 27, 2025. (AP Photo/Jacquelyn Martin)
US President Donald Trump points to a reporter to take a question as he speaks to the media in the briefing room of the White House on June 27, 2025. (AP Photo/Jacquelyn Martin)

Jakarta. Indonesia is still waiting for the US feedback on its second-best offer for the tariff talks, as Jakarta only has one week before the deadline expires.

Senior minister Airlangga Hartarto said Wednesday the United States would likely give a response later this week as Washington was currently busy dealing with its budget megabill. 

In early April, US President Donald Trump laid out the so-called “reciprocal tariff rates” that target dozens of the country’s trading partners, including Indonesia. The US plans to charge 32 percent tariffs on Indonesian goods, a policy that has been paused until July 9. Indonesia has been making offers to Trump's team back and forth over the past few months. 

Amid a nearing tariff deadline, Trump wants to sign the massive budget bill, which would introduce extended major tax cuts and higher defense spending, into law by July 4 or Friday. With the US now glued to the “One Big Beautiful Bill”, Indonesia can only wait for Washington’s response.

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“Indonesia has already made its second offer to the US Trade Representative. They have reviewed our offer, and Indonesia is currently waiting for some additional feedback. But we already have our team on standby in Washington,” Airlangga told the press in Jakarta.

“We are waiting for the US response because they are currently occupied with the big budget bill, whose deadline is on July 4. Perhaps we can resume the tariff talks after that,” he said. 

Chief negotiator Airlangga went on to say that both sides had yet to agree on the final tariff rate. However, he admitted that Indonesia was keeping its fingers crossed that the US would not slap the tariff hikes at all.

“So, we initially made some offers, but they [the US] made a counterproposal. That’s why we are now making a second offer. Our hope is for the US not to impose these reciprocal tariffs, but each country has its own policy,” Airlangga told the press.

Just a week ago, Airlangga announced on social media that he had just spoken with US Secretary of the Treasury Scott Bessent via teleconference. He claimed that the US had welcomed Indonesia’s proposal for a “fair and square trade”. 

The US Senate recently passed the sweeping tax bill, and the ball is now in the House of Representatives' court for what could be the final vote. 

Trump’s tariff plan is part of the businessman-turned-politician’s strategy to bring bilateral trade into balance. He claimed that Indonesia had been charging US goods a whopping 64 percent tariffs -- calculations that also include trade barriers. Despite the 90-day pause on the tariff hikes, a 10 percent universal tariff on all countries had already been in place since April 5. 

Amid the months-long negotiations, the trade gap between the two nations had widened. Official statistics showed Tuesday that Indonesia saw a $7.08 billion overall surplus with the US in the first five months of 2025, up from $5.37 billion recorded a year earlier.

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