Jakarta. Indonesia plans to propose reduced trade tariffs to the United States as President-elect Donald Trump prepares to implement a universal tariff policy. Several Indonesian products have long faced import tariffs in the US, signaling a challenging trade relationship that could deepen under Trump’s administration.

Chief Economic Affairs Minister Airlangga Hartarto revealed the plan during the IBC Business Competitiveness Outlook 2025 event in Jakarta on Monday. The Indonesian government intends to present the proposal as part of broader bilateral cooperation efforts to mitigate potential tariff hikes under Trump’s leadership.

“We are requesting bilateral economic cooperation to reduce tariffs,” Airlangga said, as quoted by Antara.

The trade cooperation may involve mechanisms such as a free trade agreement (FTA), Airlangga said.

Trump, set to return to office in January, has vowed to impose a 100 percent tariff on BRICS members if the bloc advances plans to create a rival currency to the US dollar. BRICS, which includes China and Russia, has pushed for reduced reliance on the dollar in global trade. Indonesia officially joined BRICS less than two weeks before Trump’s inauguration, raising concerns about the potential impact on Indonesia-US trade relations.

Airlangga, however, downplayed the concerns, saying that US tariffs on Indonesian imports—such as apparel and commodities—are not new. He also highlighted disparities in US tariff policies, pointing out that countries like Vietnam enjoy tariff exemptions.

“America has been imposing tariffs on our products, including shoes, apparel, and other commodities. Meanwhile, Vietnam is exempt from tariffs. We’ve become somewhat immune to the tariffs imposed by the US,” Airlangga said.

Despite the challenges, trade between Indonesia and the US remains strong. Bilateral trade reached $34.5 billion in 2023, with Indonesia enjoying a $12 billion surplus. Trade between January and October 2024 totaled $31.6 billion, maintaining a surplus of $11.5 billion for Indonesia.

During his first presidency, Trump ordered a review of Indonesia’s eligibility for the US Generalized System of Preferences (GSP), citing the trade deficit. The GSP, a trade preference program benefiting developing nations, expired in 2020 and awaits congressional renewal.

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