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.
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