double-skinned crabsVietnamese crab exportergood crabexellent crab

Indonesia Will Not Leave BRICS Despite US Tariff Threat

Ilham Oktafian
July 10, 2025 | 11:03 am
SHARE
President Prabowo Subianto attends the 2025 BRICS Summit in Rio de Janeiro on July 6, 2025. (Photo Courtesy of Presidential Press Bureau)
President Prabowo Subianto attends the 2025 BRICS Summit in Rio de Janeiro on July 6, 2025. (Photo Courtesy of Presidential Press Bureau)

Jakarta. Indonesia says it will remain in the BRICS bloc even if the United States moves forward with an additional 10 percent tariff on its members.

President Donald Trump has warned that the US will impose the extra levy, on top of a 10 percent baseline tariff, against BRICS nations if they continue what he called “anti-American policies,” including efforts to use local currencies instead of the dollar for intra-group trade. The so-called dedollarization push has drawn sharp criticism from the US, with Trump accusing the bloc of undermining the global financial system.

State Secretary Prasetyo Hadi said Jakarta is prepared to accept the consequences of its decision to join BRICS, which Indonesia entered as its 10th member earlier this year.

“We see this as part of the consequences of joining BRICS, and we will have to face it,” Prasetyo told reporters late Wednesday in Jakarta.

ADVERTISEMENT

Indonesia is already facing a 32 percent tariff from the US on its goods starting August 1, on top of the existing 10 percent baseline. If Washington proceeds with the additional 10 percent tariff on BRICS members, Indonesia’s exports to the US would be subject to a 42 percent trade barrier, adding further pressure to Southeast Asia’s largest economy as it tries to safeguard its trade flows while deepening ties within BRICS.

Prasetyo said the tariffs are not final, and that Indonesia has dispatched its Chief Economic Affairs Minister, Airlangga Hartarto, to Washington for negotiations with the US Trade Representative’s Office.

In a gesture aimed at easing tensions, Indonesia’s state-owned energy giant Pertamina, through its refining subsidiary Kilang Pertamina Internasional, signed memoranda of understanding this week with ExxonMobil, Chevron, and KDT Global Resources. These deals form part of Indonesia’s broader plan to deepen economic engagement with the US, which includes potential agreements worth up to $34 billion, featuring $15.5 billion in energy imports.

“We believe what we have offered to the US government already addresses many of their concerns,” Prasetyo said, adding that Indonesia would continue to pursue negotiations if the current proposals are rejected.

Trump’s threatened tariffs are set to impact 14 countries, including Japan, South Korea, Serbia, Thailand, and Tunisia, with varying rates, starting August 1. Among BRICS members, only Indonesia and South Africa are on the list of countries that have received warning letters from Washington.

Tags: Keywords:
Google Add Investor.id as a preferred source on Google +
SHARE

Related Articles


Business Oct 2, 2026 | 8:00 am

Indonesia’s US Trade Surplus Defies Tariffs, but Economists Warn Risks Remain

Indonesia posted a $12.47 billion surplus with the US in January-August 2026, up from $12.26 billion a year earlier.
Business Sep 21, 2026 | 10:27 am

US Defends Tariffs on ASEAN Amid $327.4 Billion Deficit

US says it wants to "bring reciprocity and balance" to its ASEAN trade ties amid double-digit tariff hikes.
Business Sep 14, 2026 | 12:07 pm

BRICS Pursues Multilateral Guarantees to Attract Investment

BRICS says this multilateral guarantee will mobilize private capital and improve creditworthiness of its members.
Business Sep 13, 2026 | 10:26 am

‘Currency Must Not Be Weaponized’, Prabowo Tells BRICS

Prabowo tells BRICS that "trade and currency must not be weaponized" as discussions to shift away from the dollar gain momentum.
Business Sep 12, 2026 | 10:33 pm

BRICS Indirectly Hits Out at Trump’s Tariffs, WTO Paralysis

BRICS doesn't want to see unilateral tariffs and a paralyzed WTO court system, all of which are linked to the US.
Business Sep 8, 2026 | 7:16 pm

Trump Tariffs Cripple EU Firms’ Confidence in ASEAN

As many as 81% of the surveyed European businesses admit that the US tariffs had weakened their confidence in ASEAN.
Business Aug 20, 2026 | 10:13 pm

'We Don't Export Plastic to US': Indonesia on ‘False’ Transshipment Scam Claims

Indonesia denies enabling Chinese goods, namely plastic packaging, avoid Trump's tariffs.
Business Aug 20, 2026 | 12:28 pm

Indonesia Denies US Accusation of Chinese Transshipment Scam

Senior minister Airlangga Hartarto says "Indonesia has never done transshipment", when asked about the US report.
Business Aug 19, 2026 | 8:06 pm

US Accuses Indonesia of Helping China Dodge Trump Tariffs

The US accuses Indonesia and dozens of other countries of being part of "China's shadow transshipment network".
Business Jul 29, 2026 | 3:44 pm

ASEAN Hopes for Predictability on Trump’s Tariffs

ASEAN says the region's businesspeople wish for a predictability and certainty as Trump launches a fresh round of tariff hikes.

The Latest


Special Updates 1 hours ago

Chandra Asri Group Receives Trade Finance Excellence Award, Reinforcing Its Role in Indonesia’s Industrial Development

Chandra Asri Group receives the Trade Finance Excellence Award at CIMB Niaga Business Summit 2026.
Special Updates 2 hours ago

AEON MALL Deltamas Brings 11 Sports and Creative Competitions to AEONLYMPIC 2026

AEON MALL Deltamas hosts AEONLYMPIC 2026, featuring 11 sports and creative competitions, with more than 3,100 participants.
Business 2 hours ago

Indonesian Stocks Extend Losses for Third Day, Fall 3.64% to 4,996

Indonesian stocks fell 3.64% on Monday, extending losses for a third straight session amid MSCI concerns and tighter trading limits.
News 4 hours ago

Prabowo Calls Meeting on Forest Fires as Haze Reaches Jakarta, Singapore

Prabowo summons senior officials to discuss forest fires as smoke reaches Jakarta and Malaysia pushes for regional action.
Lifestyle 5 hours ago

Jakarta Outranks Amsterdam in Global Public Transport Survey

Jakarta climbs two places to 15th in Time Out's 2026 public transport survey, with its governor citing better network integration.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED