Jakarta. Senior minister Airlangga Hartarto said Monday that the deal that would see the US slapping 19 percent tariffs on Indonesian goods was already final, ruling out any major changes to the agreement. 

US President Donald Trump recently decided to adjust his reciprocal tariffs on Indonesia from 32 percent to 19 percent following a phone call with President Prabowo Subianto. Under this deal, Jakarta had made some sweeping concessions to quell Trump's concerns over the bilateral trade imbalance. According to Airlangga, the two governments are currently drafting a “joint statement” that will lay out the specifics, although he did not give a timeframe for this much-anticipated document.

“The 19 percent tariff is the outcome of the high-level talks between Mr. Prabowo and Mr. Trump. So the numbers are final and binding,” Airlangga said in Jakarta, while pointing out that what Indonesia got was lower than most of its ASEAN neighbors.

For context, the rates that Washington has imposed on other Southeast Asian countries fall between 20 and 40 percent. Singapore is the only country in the region that faces “just” the blanket 10 percent rate without having to worry about duty hikes, at least for now. The US has given other ASEAN countries, alongside other tariffed economies, a negotiating window until August 1. Jakarta had struck the deal about three weeks before the deadline.

Airlangga—the chief negotiator in the talks with the Trump government— said he could not say when the 19-percent tariff would be in effect. However, Jakarta is already subject to the baseline tariff of 10 percent, which kicked in for all imports to the US in early April.

“[The entry into force of the 19-percent duty] will have to wait for the joint statement and future announcements. It can be faster or later [than August 1],” Airlangga told the press.

In exchange for a lower-than-promised tariff, Indonesia has agreed to let virtually all American goods in at 0 percent duty. Jakarta has made some major import commitments, including $15 billion worth of US energy, $4.5 billion in American farm products, as well as 50 jets made by the aerospace giant Boeing.

Airlangga refused to comment much on the jet purchase, saying that it was a business-to-business negotiation involving the flag carrier Garuda Indonesia. He also remained tight-lipped on Indonesia’s plans to push for tariff exemptions on major commodities such as crude palm oil and nickel.

“We are still discussing the tariff terms line by line. Just stay tuned,” Airlangga said.

The minister had gathered Indonesian businesspeople in his office to brief them on the latest tariff updates. Just a few days after the 19-percent tariff was announced, Airlangga's aide Susiwijono Moegiarso claimed that there was still room to pursue exemptions for Indonesia's key commodities that the US could not produce domestically.

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