Jakarta. A senior government official said Monday that Indonesia’s tariff deal with the US will not deal a severe blow to the state revenue, although collections had slowed because of existing trade agreements.

Indonesia recently became the latest country to sign a trade deal with the US government. The accord, which remains subject to lawmaking processes and further negotiations, has cut the levies on virtually all American goods down to 0%. Febrio Kacaribu, the director-general for fiscal policies at the Finance Ministry, addressed concerns about what these eliminations would mean for the tariff money collected by Indonesia.

“Trade deals, be it the one with the European Union or the US, grant tariff reductions to boost import-export activities. So it will affect our import duty collections, but the impact is limited,” Febrio told a press conference in Jakarta.

“But we have always been anticipating [the effect] of trade deals, be it with the European Union and the US. So there is no shock to the state revenue.”

The Finance Ministry reported that a 4.4% year-on-year decline in import duties, reaching only Rp 3.7 trillion ($220.2 million) in the first month of 2026. The collection only made up 7.4% of what Indonesia has targeted for this year. The government attributed the decline to free trade agreements, among others. Collected import duties reached Rp 3.9 trillion ($232 million) in January 2025. 

The US government recently outlawed US President Donald Trump’s tariff regime, nearly a day after his government signed a trade deal with Jakarta. Trump quickly introduced 10% global tariffs and later raised the rate to 15%. Anything can happen at this point, and the Indonesian side has stated that it will keep a close watch on the developments. 

The government intends to engage in renegotiations, particularly to make sure that certain goods, such as palm oil, can still enjoy their tariff exemptions. The 0% rate on US goods will come into effect 90 days after an official notification that the document has been ratified in both countries.

“We are ready to face any possibilities. We will respect the US domestic politics. We will keep an eye on the developments,” President Prabowo Subianto recently told reporters in Washington, commenting on the court ruling.

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