Jakarta. Indonesia believes that its exports will do just fine in the American market even after the 19 percent tariffs by the United States kick in later this week.

Jakarta also remains upbeat that the duty hikes will give it an advantage against its apparel trade rivals, China and Vietnam.

US President Donald Trump will officially slap a 19 percent tax on Indonesian goods starting August 7 as part of a policy better known as “reciprocal tariffs”.

Indonesia will get the same reciprocal tariff rate as its ASEAN neighbors, the Philippines, Malaysia, and Thailand. Trade Minister Budi Santoso on Monday dismissed worries that Trump's policy could take a toll on Indonesia's exports, saying that the tariff increases had given Jakarta an edge on China, India, and Vietnam. He was also confident that Indonesia could still record 7.1 percent export growth in 2025.

For context, Trump has declared a 25 percent reciprocal tariff on Indian goods. Vietnam, one of Indonesia’s competitors in the footwear trade, will be subject to 20 percent tariffs. The new tariffs will come into effect on August 7. Trump is not exactly on his best of terms with his Chinese counterpart, Xi Jinping. Washington, however, has agreed to drop its tariffs on Beijing from a whopping 145 percent to 30 percent during a fragile trade truce that is due to expire on August 12.

“We are already enjoying a surplus even before the reciprocal tariffs become effective. We will keep tabs on the American market, but we are getting a 19 percent reciprocal tariff, which is pretty good and low in the ASEAN region,” Budi told a news conference in Jakarta. 

“It’s not like we are back to square one.  Back then, we used to compete at the same level under the most favored nation [MFN] rates. But now, the tariffs vary. Some are high, while others are low. We were competing against China, India, and Vietnam -- and they all will be subject to higher import taxes,” Budi said.

The MFN sees the US charging non-discriminatory tariffs on World Trade Organization (WTO) members that lack trade agreements. The US reported that its average  MFN tariff rates stood at around 3.3 percent, which Washington claimed to be one of the lowest in the world.

Indonesian data showed that Jakarta -- alongside China, Vietnam, and India -- was among the US’ top foreign suppliers for non-knitted or crocheted apparel. China is Indonesia’s main competitor in the US footwear market.

“We are keeping a close eye on our top 10 US exports, including how high the tariffs are on our competitors. I believe we will remain competitive,” Budi added. 

As the deadline approaches, talks between both governments are still underway as Jakarta eyes lower rates for certain commodities that the US can't produce on its own, according to Budi. Some examples of the said commodities include palm oil and nickel.

Indonesia's chief negotiator Airlangga Hartarto had previously told reporters that the 19 percent tariff was already “final” and “binding”. Airlangga said that the 19 percent tariffs were the number agreed by President Prabowo Subianto and Trump when speaking on the phone a few weeks ago.

Trade Ministry data shows the US was Indonesia’s second-biggest export destination in the first half of 2025. US-bound exports totaled nearly $14.8 billion. China had topped the export destination list as Indonesia had sold approximately $29.3 billion to the Asian superpower. The US was Indonesia’s top surplus contributor that period, adding around $9.9 billion to the positive trade balance.

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