Vietnamese crab exportergood crabexellent crab

Indonesia Stunned by US Tariff Decision Despite $34B Trade Offer

Heru Andriyanto
July 9, 2025 | 9:30 am
SHARE
Chief Economic Affairs Minister Airlangga Hartarto meets US Trade Representative Jamieson Greer in Washington DC on April 17, 2025. (Photo Courtesy of Coordinating Ministry for Economic Affairs)
Chief Economic Affairs Minister Airlangga Hartarto meets US Trade Representative Jamieson Greer in Washington DC on April 17, 2025. (Photo Courtesy of Coordinating Ministry for Economic Affairs)

Jakarta. Chief Economic Minister Airlangga Hartarto said on Tuesday that US President Donald Trump’s decision to maintain a steep 32 percent tariff on Indonesian exports came as a surprise to Jakarta, despite extensive efforts by the Indonesian government to ease trade tensions.

Trump’s announcement -- posted on his social media account -- comes amid a series of proposals from Indonesia aimed at helping reduce the US trade deficit. These include a pledge to increase imports from the United States by $34 billion, covering agricultural products, energy, Boeing aircraft, and other sectors. Jakarta has also signaled plans for a major US-bound investment through its state sovereign wealth fund, Danantara.

“It’s a surprise,” Airlangga told The Washington Post on Tuesday while en route to Washington to meet with US officials. “We have been moving 180 degrees, and the US is not moving at all -- zero. There were a lot of things we had already discussed in detail.”

In contrast, Washington has agreed to lower tariffs on Vietnam to 20 percent -- down from 46 percent -- and on Cambodia to 36 percent, from a previously proposed 49 percent rate. Indonesia, however, remains subject to both the 32 percent hike and a 10 percent baseline tariff applied globally.

ADVERTISEMENT

The lack of progress has led several Indonesian trade experts to call for a strategic shift in Jakarta’s approach.

Iman Pambagyo, former Indonesian ambassador to the World Trade Organization (WTO), said the White House’s stance underscores that Trump’s trade policy is not guided by fairness or reciprocity, but by “optics, leverage, and domestic political strategy.”

“This outcome was avoidable,” Iman said. “Some of us warned early on that playing Trump’s game would be a trap. Now that the trap has sprung, the question is not how to appease Washington further, but how to build genuine resilience.”

Lili Yan Ing, Secretary General of the International Economic Association, echoed that sentiment, suggesting that Indonesia and ASEAN should bypass direct engagement with Trump and instead influence Washington through American corporations with deep interests in the region.

“Trump will not listen to Indonesia, ASEAN, or any other country. Engaging directly with him is a dead end,” she said in Jakarta. “To safeguard its interests, ASEAN must work through US companies that have reaped trillions of dollars from the region. These firms are ASEAN’s most effective channel to ensure its voice is heard.”

Tags: Keywords:
SHARE

Related Articles


Business Jun 10, 2026 | 5:45 pm

Indonesia Prepares Stimulus as Pertamax Price Jumps 32%

Indonesia is preparing stimulus measures after Pertamax fuel prices surged 32%, raising inflation concerns.
Business Jun 7, 2026 | 12:28 pm

Indonesia Targets EU Trade Deal Ratification in 2026, Implementation by Early 2027

Indonesia aims to ratify its trade agreement with the European Union this year, paving the way for implementation in 2027.
Business Jun 5, 2026 | 10:18 am

US 10% Forced Labor Tariff on Indonesia to Apply After July 24

The US will hold off on implementing the forced labor tariff until after July 24 to avoid overlapping with the current import tax.
News May 26, 2026 | 2:44 pm

Govt Extends Weekly WFH Policy After Fuel Use Drops 9%

The government says once-a-week remote work helped cut subsidized fuel consumption as energy costs remain volatile.
Business May 22, 2026 | 2:27 pm

Airlangga Says Single-Gate Export Policy Won’t Restrict Businesses

Airlangga said Indonesia’s new single-gate export policy aims to tighten oversight and keep export earnings onshore.
Business May 22, 2026 | 10:06 am

Indonesia Details New Export Earnings Rules for Natural Resource Companies

Exporters from non-oil sectors must place 100% of export proceeds in special accounts at state-owned banks for 12 months.
News May 16, 2026 | 2:42 pm

Airlangga Meets Belarus PM to Boost Economic Partnership

Indonesia and Belarus explore stronger cooperation in food security, energy, trade, and agricultural technology sectors.
Special Updates May 13, 2026 | 3:29 pm

Indonesia Pushes Follow-Up Cooperation With Russia Across Key Economic Sectors

Indonesia and Russia agreed to accelerate cooperation in trade, energy, agriculture, and technology under a broader Eurasian strategy.
Special Updates May 13, 2026 | 3:07 pm

Indonesia and Russia Agree on New Framework for Trade and Investment Cooperation

Indonesia and Russia signed a broad cooperation framework covering trade, energy, technology, agriculture, and digital development.
Business May 5, 2026 | 6:30 pm

Indonesia Plans $3.2B Civil Servant Bonus in June to Sustain Q2 Growth

Indonesia plans Rp 55T civil servant bonus and wider stimulus to sustain strong growth momentum into Q2.

The Latest


News 3 hours ago

Lamine Yamal Scores in Spain's 4-0 Demolition of Saudi Arabia 

He has helped Spain win the European Championship in 2024 despite being just 16 years old when the tournament started.
Business 5 hours ago

4,000 Workers at Nike Supplier in Indonesia Sent Home as New Orders Dry Up

Feng Tay Indonesia Enterprises is part of Taiwan-based Feng Tay Group and has operated in Indonesia since 1992.
Business 7 hours ago

Indonesia Says Aggressive Rate Hikes Are Helping Stabilize Rupiah

Indonesia says recent rate hikes are helping stabilize the rupiah, though economists warn monetary policy alone is not enough.
News 15 hours ago

Ayase Ueda Scores Twice in Japan’s 4-0 Win Against Tunisia 

Japan’s four goals were the most the Samurai Blue had ever scored in a World Cup game.
News 18 hours ago

Jakarta Completes Rasuna Said Revamp, Removes 109 Derelict Pillars

Jakarta has completed the transformation of Rasuna Said, removing 109 abandoned monorail pillars and upgrading public spaces.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED