Jakarta. Indonesia on Thursday welcomed US President Donald Trump’s decision to delay his reciprocal tariffs by 3 months as Jakarta tries to step up the negotiations for the time being, according to a deputy minister. 

Trump decided to give the US trading partners 90 days on Wednesday local time before finally slapping them steep tariffs to improve Washington’s trade imbalance. Trump made a U-turn after countries approached his government to bring down the tariffs, although China still has to face a levy hike of a staggering 125 percent when selling its goods to the US.

Indonesia, which was supposed to be subject to a 32 percent reciprocal tariff, was among those who have been negotiating with the Trump government. His recent announcement became a relief for Indonesia, with Deputy Trade Minister Dyah Roro Esti saying that Indonesia would keep tabs on the developments following the postponement. 

“We will continue to uphold negotiations. … This [delay] becomes a positive signal. Indonesia is among the ASEAN countries that do not retaliate,” Dyah Roro told reporters in Jakarta when asked about the tariff relief. 

“We [Indonesia] don't show anger because we value our relationship with the US. They are one of our largest trading partners,” she said.

Chief Economic Affairs Minister Airlangga Hartarto is scheduled to fly to Washington DC to negotiate the tariffs next week.  Foreign Affairs Minister Sugiono and Finance Minister Sri Mulyani will join this high-level delegation, according to Dyah Roro. She said: “Let’s just wait for their updates. If God is willing, everything will go smoothly.”

Muhammad Habib, an international relations researcher at the think-tank CSIS, warned that the tariff delay did not mean that Indonesia should not let its guard down.

“It is only a suspension, not elimination. Moreover, this is also about President Trump. He may change his mind more often than we could predict,” Habib told the Jakarta Globe. 

To sweeten the deal, Indonesia is mulling buying more American goods. This way, the US should be able to improve its trade imbalance. The US has accused Indonesia -- and other countries hit by the tariffs -- of unfair trading practices, hence the levy hikes. The Trump government even claimed that Indonesia had been charging American goods a 64 percent tariff with the rate calculations also taking into account non-tariff measures, including complex importing regimes. 

According to Habib, Indonesia needs to come up with a clear action plan to take advantage of the 90-day tariff delay, including how Jakarta could advance its regulatory reform agenda. 

“If we could use this momentum to appoint our ambassador, it would be far better,” Habib said. 

The Indonesian ambassadorial post in the US has remained vacant since July 2023. Many experts have expressed concerns that its absence could reduce Indonesia’s bargaining power in the tariff talks. The government, however, said that the US envoy’s absence had little impact on the negotiations.

Official figures showed that Indonesia enjoyed a $14.3 billion surplus when trading with the US throughout 2024. Bilateral trade reached almost $38.2 billion that year.

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