Indonesia is Still Trying to Negotiate US Tariffs: Deputy Minister
Jakarta. Indonesia is still in talks with the US over the upcoming 32 percent tariffs, according to Deputy Trade Minister Dyah Roro Esti.
US President Donald Trump had just announced that Indonesian goods would face 32 percent tariffs starting next month unless Jakarta agrees to manufacture its products in American soil. Indonesia has been rushing to clinch a deal with Trump's government over the past few months. Trump's latest announcement sparked fears that Jakarta might have failed to convince the US to change its mind on the tariffs.
"It is still in the process. Our negotiating team is still actively working in Washington," Dyah Roro told reporters in Jakarta on Tuesday.
Dyah Roro said that Chief Economic Affairs Minister Airlangga Hartarto -- who had been leading the tariff talks -- would travel to the US soon. Airlangga is currently in Brazil to accompany President Prabowo Subianto on his BRICS debut. "He [Mr. Airlangga] will travel to the US after the BRICS Summit," she stated.
She also told everyone to wait for an official announcement by the Indonesian government in regard to Trump's latest tariff salvo. At the same time, the government will work to make sure that Indonesia's trade performance remains unaffected by Trump's policies, among others, by tapping other potential markets.
"Once again, everything is still in the process. Let's all just wait for the formal announcement," Dyah Roro said.
In recent months, Indonesia has sought to ease Trump’s tariff threats by pledging to increase imports from the United States. Just last week, Chief Negotiator and Senior Minister Airlangga Hartarto said Indonesia planned to sign a $34 billion memorandum of understanding with American business partners on July 7. The agreement would cover $15.5 billion in US fuel imports and include planned investments involving Indonesia’s sovereign wealth fund Danantara and state-owned enterprises.
There have been no updates on the $34 billion deal so far. Airlangga is currently in Brazil accompanying President Prabowo Subianto on his BRICS debut but told reporters that Indonesia has a team on standby in Washington to handle the tariff issue.
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