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Prabowo on US Tariffs: Indonesia Ready to Talk, Eyes '96 Trade Pact Overhaul

Celvin Moniaga Sipahutar, Bambang Ismoyo
April 7, 2025 | 5:49 pm
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President Prabowo Subianto delivers a speech during the national congress of the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta, Thursday, Jan. 16, 2025. (Antara Photo/Aditya Pradana Putra)
President Prabowo Subianto delivers a speech during the national congress of the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta, Thursday, Jan. 16, 2025. (Antara Photo/Aditya Pradana Putra)

Jakarta. President Prabowo Subianto said Monday that Indonesia is ready to open trade negotiations with the United States, days after President Donald Trump imposed a 32 percent tariff on Indonesian imports.

Speaking in Majalengka, West Java, during a nationwide harvest event with farmers from 14 provinces, Prabowo struck a calm but firm tone, signaling Jakarta’s willingness to engage Washington while protecting national interests.

“The trade war is affecting us, but we remain calm. We are strong and will negotiate with all nations, including the United States,” Prabowo told the crowd.

It was Prabowo’s first public statement since the Trump administration unveiled its sweeping tariff measure on April 2, part of a broader effort to rebalance US trade relationships with its partners.

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Prabowo acknowledged the move as part of America’s national interest but maintained that Indonesia would respond strategically. “We want a good, fair, and equal relationship,” he said. “We will face this with our heads held high.”

To that end, Prabowo announced that Indonesia would send a high-level delegation to Washington to explore a constructive path forward. “If their demands are reasonable, we will consider them. But we must also think of our people,” he said.

Jakarta Looks to Revamp 1996 Trade Pact

Chief Economic Affairs Airlangga Hartarto echoed the president’s stance, saying the government would push to overhaul the Trade and Investment Framework Agreement (TIFA) with the US—a pact signed in 1996 that many see as outdated.

“Indonesia and Malaysia are both advocating for a TIFA update,” Airlangga said at a press conference in Jakarta on Monday. “Many of the original provisions no longer align with today’s economic realities.”

Airlangga confirmed that the US and several Southeast Asian countries, including Indonesia, Singapore, and Cambodia, have begun informal discussions. He stressed that ASEAN would pursue dialogue, not retaliation.

“ASEAN will prioritize negotiations. There will be no retaliatory moves,” he said.

Trade ministers from ASEAN member states are scheduled to meet in Jakarta on April 10 to finalize a joint response. Airlangga’s recent trip to Malaysia underscored Jakarta’s effort to rally support across the region.

On April 3, he met with Malaysian Deputy Prime Minister Ahmad Zahid Hamidi in Kuala Lumpur. The next day, he sat down with Prime Minister Anwar Ibrahim in Putrajaya, accompanied by Malaysian Trade Minister Tengku Zafrul Abdul Aziz.

Airlangga said that ASEAN’s voice must grow stronger amid mounting global headwinds. “ASEAN’s position in the Indo-Pacific is pivotal. We must become a force that strengthens regional economic resilience,” he concluded.

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