Jakarta. Indonesia’s National Economic Council Chairman Luhut Binsar Pandjaitan plans to meet US Commerce Secretary Howard Lutnick in September to resume negotiations on sector-specific tariffs, aiming to ease import duties on key Indonesian exports.

Luhut, who has secured approval from President Prabowo Subianto for the talks, said the meeting will focus on Indonesia's main commodities in the US, such as palm oil. “With my close friend Lutnick, I’ll also discuss labor-intensive industries like garments and footwear so they’re not burdened unnecessarily,” Luhut told reporters in Jakarta on Wednesday.

The discussions follow US President Donald Trump’s imposition of a 19 percent tariff on Indonesian goods, which took effect on Aug. 7. While Jakarta has accepted the rate as “final and binding,” it has been pressing the Trump administration to lower import taxes on products the US does not produce domestically, including nickel, palm oil, cacao, and coffee. “We’ve already softened Trump’s stance. Our 19 percent rate is still lower than Vietnam’s 20 percent, the lowest in ASEAN,” Luhut said.

Trump’s sweeping tariff strategy is part of a push to narrow America’s trade deficit, which his administration said reached $17.9 billion with Indonesia in 2024, up 5.7 percent from the previous year.

Just before the tariffs kicked in, Investment Minister Rosan Roeslani said Washington had agreed to scrap import duties on Indonesian copper. He did not specify whether the zero tariff would be implemented immediately or at a later date.

The U.S. is a major market for Indonesian goods, with bilateral trade in 2024 totaling $40.2 billion. Any sectoral tariff relief could help cushion the impact of Trump’s measures on Southeast Asia’s largest economy, which is already navigating slower global demand and a strong US dollar.

Add as a preferred source on Google +