Indonesia’s Chief Negotiator En Route to US for Tariff Talks
Jakarta. Indonesia is sending its chief negotiator, Airlangga Hartarto, to Washington, DC, shortly after US President Donald Trump revealed that he would stick to the plan of imposing 32 percent tariffs on all goods made by Jakarta.
The American politician recently confirmed the new levies by posting the letter he sent to President Prabowo Subianto on social media. In the letter written in random capitalization, Trump wrote that these tariffs would enter into force starting next month. Trump stated that he was open to getting rid of the tariffs if Indonesia is interested in manufacturing its products in the US. Hasan Nasbi, head of the president’s communications office, told reporters that Indonesia already had its negotiating team on standby in the US.
“Our chief economic affairs minister [Airlangga] is also en route from Rio de Janeiro to Washington, DC,” Hasan told a broadcasted presser on Tuesday.
Airlangga was in the Brazilian city to attend the BRICS Summit.
Hasan did not respond to the press’ question on whether Trump’s latest tariff threat could be related to Indonesia’s membership in the China-led BRICS. However, Hasan said that the Indonesian government remained optimistic that Jakarta could clinch a deal with Trump. He added: “We [Indonesia] have had good relations with all countries, including the US. … Our good ties can serve as a strong social capital for our negotiations.”
Airlangga has yet to issue a statement regarding the tariff hikes.
His spokesman, Haryo Limanseto, has confirmed the chief economic minister's travel plans.
“There is still room for negotiations, as said by the US government. That’s why the Indonesian government will take advantage of this opportunity to maintain our national interests,” Haryo wrote in a separate statement.
According to Haryo, Airlangga is set to land in the US on Tuesday.
Prior to Trump’s letter, Indonesia was supposed to sign a memorandum of understanding (MoU) valued at $34 billion with American business partners on Monday as part of the tariff negotiations. Under the MoU, Southeast Asia's largest economy has proposed buying more American fuels worth $15.5 billion. Indonesia also offered some investment plans involving Indonesia’s sovereign fund Danantara and state-owned enterprises, according to Airlangga. The government has yet to release any updates on this $34 billion deal.
Trump had threatened an additional 10 percent on countries that aligned themselves with BRICS’ “anti-American policies”. BRICS is a group of emerging economies that include Brazil, China, Russia, India, and South Africa, among others. The bloc has officially admitted Indonesia as its member early this year. BRICS recently slammed Trump’s reciprocal tariff at its Rio de Janeiro Summit, but the group shied away from directly mentioning the US in its statement.
Tags: Keywords:Related Articles
How Indonesian Traditions Can Drive Local Economy
The Indonesian government sees opportunities in driving the local economy by preserving local traditions.ASEAN Hopes for Predictability on Trump’s Tariffs
ASEAN says the region's businesspeople wish for a predictability and certainty as Trump launches a fresh round of tariff hikes.Government Says Perry Warjiyo's Resignation Won't Disrupt Monetary Policy
The government says Bank Indonesia's policies and coordination will continue unchanged despite Perry Warjiyo's resignation.Indonesia Banks On EU as Trump's 10% Tariff Kicks In
Indonesia wants to fast-track its European Union (EU) trade deal as Jakarta tries to find alternatives to the tariff-agressive US.US Slaps 10% Tariff on Indonesia over Forced Labor
A new 10% tariff on Indonesia following a forced labor probe will take effect on Friday before noon.Gov't to Launch International Financial Center in Jakarta Before Expanding to Bali
Indonesia will launch its international financial center in Jakarta before expanding the project to Bali within two to three years.Indonesia to Exempt China, Australia, Canada from Export FX Retention Rule
Previously, only the United States was exempt from the policy.Indonesia Welcomes S&P's Investment-Grade Rating Affirmation
S&P maintained Indonesia's long-term sovereign credit rating at BBB and its short-term rating at A-2, both with a stable outlook.Government Stays Firm in Making Bali New International Financial Center
Indonesia will establish a financial center in Bali with tax breaks and a special legal framework to attract foreign capital.Indonesia's IPO Momentum Signals Strong Business Confidence and a Resilient Economy
Indonesia's capital market stays resilient as IPO activity continues and six more companies prepare to go public.The Latest
Pullman Hotel Fire in Jakarta Suspected to Stem From Electrical Fault
Police will deploy a forensic team to investigate a fire at Pullman Hotel in West Jakarta, with an electrical fault suspected as the cause.Pertamina Slashes Prices of Three Fuels From Aug. 1
Pertamina cut prices for three non-subsidized fuels from Aug. 1.Trump Too Stubborn to Rejoin Paris Agreement: Indonesian Minister
Indonesia's Environment Minister Jumhur Hidayat says other countries should deal with Trump quitting the Paris Accord.Indofood Sales Rise 9% as Rupiah Weakness Hits First-Half Profit
Indofood’s first-half sales rose 9%, but net profit fell 19% as rupiah weakness increased unrealized foreign-exchange losses.JCI Ends Week Higher as Investors Digest Earnings, Fed Decision
JCI rose 0.64% as strong corporate earnings offset uncertainty over Bank Indonesia’s leadership and foreign outflows.Most Popular
