Jakarta. Chief Economic Affairs Minister Airlangga Hartarto said Friday that he would head to the US next week for tariff talks, as Jakarta sought to wrap up the negotiations by the year-end.

Indonesia-US tariff negotiations have been subject to delays and rumors of a poison pill clause souring the mood. Airlangga had just spoken with US Trade Representative Jamieson Greer virtually on Thursday night, Jakarta time. Speaking to reporters the following day, Airlangga revealed both negotiating teams would soon hold another round of talks in Washington.

“We will send a team to the US next week, myself included. We will finalize the document based on the earlier agreement announced in July,” Airlangga stated.

The Jakarta Globe asked Airlangga whether President Prabowo Subianto would soon negotiate directly with his American counterpart, Donald Trump. The minister stated that the leaders would only meet “once everything [related to the agreement] is done”. He also signaled that the governments were close to finalizing matters related to non-tariff barriers.

In July, the White House unveiled a joint statement indicating that Washington agreed to reduce the tariffs on Indonesia from the originally threatened 32 percent to 19 percent. The document laid out the concessions that Jakarta was willing to make to narrow the trade imbalance. This includes letting American industrial and agricultural goods enter its market tariff-free, while also addressing barriers related to digital trade. Jakarta also made major purchase commitments, including $15 billion worth of US energy imports. Washington’s goods trade deficit with Indonesia -- which neared $18 billion last year -- was what had ignited Trump’s tariff wrath.

The Indonesian government has dismissed media reports of poison pill clauses stalling the negotiations. The controversial provisions in question are feared to be similar to what Malaysia had agreed to.

According to the Malaysia-US deal documents, Kuala Lumpur has to mirror the sanctions that Trump imposes on other countries. Trump has threatened tariff hikes if Malaysia enters a new deal with a country that “jeopardizes essential US interests” in an attempt to distance Kuala Lumpur from China.

At home, China has been a major trading partner and investor in Indonesia. The Asian superpower has also bankrolled many strategic projects, including the now debt-laden Jakarta-Bandung high-speed train.

Jakarta has denied media claims that US officials were frustrated by Indonesia's backtracking on its earlier commitments. Indonesia has also stated that it would make sure that the deal would be mutually beneficial.

International relations analyst Muhamad Habib told the Globe that Jakarta should try to pitch “alternative ideas” if presented by a clause that does not align with Indonesia’s interests. He reminded Jakarta’s negotiating team to proceed “with prudence, while continuing to maintain dialogue”.

Indonesian business group Apindo has also warned the government against falling into the same trap as Malaysia.

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