Jakarta. The United States will not impose its new reciprocal tariff of 19 percent on Indonesian goods starting Aug. 1, as the two countries have yet to finalize a bilateral trade agreement, according to Chief Economic Affairs Minister Airlangga Hartarto.

Speaking at the Investor Daily Roundtable in Jakarta on Monday, Airlangga said that the reciprocal tariff policy, recently introduced by US President Donald Trump, will only apply to countries that have completed detailed negotiations with Washington.

“Not all countries will be affected immediately on August 1. The implementation depends on whether a bilateral agreement has been finalized,” Airlangga said at the forum held at Hotel Mulia Senayan.

He did not specify when the agreement with the United States is expected to be completed.

Indonesia remains exempt from the 19 percent tariff, Airlangga confirmed, as discussions over the trade package -- which includes tariff adjustments-- are still ongoing. Until a deal is signed, Indonesian exports to the US will continue to be subject to the current 10 percent tariff rate.

President Prabowo Subianto and Trump recently reached a preliminary agreement to reduce the US tariff on Indonesian goods from a previously planned 32 percent to 19 percent. In return, Indonesia has agreed to gradually lift tariffs on almost all US-origin products, with exceptions for sensitive items such as alcoholic beverages and pork.

The tariff negotiations include Indonesia’s planned imports of $15 billion in energy and $4.5 billion in agricultural products from the US. Jakarta has also committed to purchasing 50 Boeing aircraft as part of the deal.

Meanwhile, Indonesia is negotiating for palm oil, nickel, coffee, and cocoa to enter the US duty-free.

According to Airlangga, the tariff will only be applied once the agreement is signed. “We’re still in talks, and the format of the agreement is being finalized. Once both parties sign, that’s when the new tariff comes into force,” he said.

Other countries, such as Vietnam and Japan, which have already reached deals with Washington, are set to see the new tariff rates implemented next month. Airlangga added that Indonesia is open to renegotiating the terms should competitor nations like Vietnam receive more favorable rates, particularly in key sectors such as textiles.

He also stressed that the final decision rests with the leaders of both countries. “There’s no deal higher than one made between presidents. If President Prabowo and President Trump have agreed on 19 percent, no minister can change that,” he said.

Airlangga said Indonesia may review the trade agreement in the next five years under the WTO’s Most Favoured Nation principle.

The United States remains Indonesia’s top contributor to its trade surplus, which reached $5.44 billion from January to April 2025, up from $4.37 billion in the same period last year, according to data from the Central Statistics Agency (BPS).

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