Jakarta. A Swiss diplomat said Tuesday that his country and Indonesia should do business more by taking advantage of their existing free trade agreement regardless of US President Donald Trump’s tariff blow on the world.

The clock is ticking before Trump’s 32 percent “reciprocal” tariff on Indonesia takes effect in July. Trump claimed that Indonesia’s 32 percent tariff was only half what it had been charging on American goods. The US also slapped a 31 percent duty on Swiss goods, much higher compared to Trump’s 20 percent duty on products made in the European Union. These reciprocal tariffs were supposed to kick in on April 9, but Trump made a last-minute decision to pause these steep rates for 90 days. However, a 10 percent baseline tariff stays in place.

The tariffs have sent countries such as Indonesia to look for new markets while also trying to negotiate with Trump’s government. Talks for the conclusion of trade agreements are now in full swing.

The Jakarta Globe asked Swiss Ambassador to Indonesia Olivier Zehnder whether his country considered Trump’s tariff as a new impetus to greater bilateral trade. According to Zeihnder, it is about time for both countries to “take a better advantage” of Indonesia’s existing trade treaty with the European Free Trade Association (EFTA). The EFTA brings together Iceland, Liechtenstein, Norway, and Switzerland itself. 

“I think we have to [boost trade]. We have a free trade agreement between Indonesia and the EFTA countries. I hope we make better use of that agreement to increase trade relations, with or without US tariffs,” Zehnder said on the margins of a hydropower forum in Jakarta.

Official government figures showed that Indonesia-Switzerland trade amounted to $2.3 billion in 2024, down from $3 billion posted the previous year. In 2024, Indonesia’s exports to the European nation hit $1.5 billion, while imports reached approximately $827.5 million in value. This gave Indonesia a $674.4 million surplus. The comprehensive economic partnership agreement (CEPA) between Indonesia and the EFTA entered into force in November 2021. This treaty eliminates most of the import duties on Indonesian goods such as palm oil, footwear, and textiles, to the EFTA nations.

Zehnder said that Switzerland was looking to buy more Indonesian manufactured goods while saying that Jakarta’s industrial products could now enter the Swiss market duty-free. As of early last year, Switzerland has abolished industrial tariffs. Switzerland is open to increasing its imports of Indonesian footwear and textiles -- both also happen to be among the hardest-hit products once the US tariffs take into effect.

“We traditionally export pharmaceutical and chemical goods, as well as machine tools here. … And we already have the tools like the CEPA [to trade more],” the diplomat said.

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