Jakarta. The Indonesian government recently said that it would always uphold national interests in its trade negotiations, including the recent talks with the United States.

Indonesia has been negotiating tariffs with the US after the latter threatened to slap 32 percent tariffs back in April. US President Donald Trump later agreed to cut it to 19 percent.

According to the Coordinating Ministry for Economic Affairs, the talks with the US have been long and inclusive. Jakarta also upheld what it called the "Indonesia Incorporated" framework by involving various stakeholders, including ministries, businesspeople, and experts.

"The entire negotiation process and international partnership that the government is pursuing is based on national interests," the ministry's spokesman, Haryo Limanseto, was quoted as saying in a press statement.

Following Trump's tariff announcement in April, the government immediately held a meeting with related ministers. Chief Economic Affairs Minister Airlangga Hartarto even set up a negotiation team, while also seeking inputs from businesses that might be affected by the 32 percent tariff.

President Prabowo Subianto announced at the time that Indonesia would engage in negotiations with the Trump government. The American businessman-turned-politician later gave countries across the globe a 90-day negotiating window until July 9.

In mid-April, Airlangga's team flew to Washington to meet with high-ranking officials, including US Trade Representative Jamieson Greer, Secretary of Commerce Howard Lutnick, and Secretary of the Treasury Scott Bessent, among others. Both nations also signed a non-disclosure agreement on reciprocal trade and economic security, serving as the basis for follow-up talks on the technical terms.

According to Haryo, Indonesia's approach in the deal negotiations was to secure a fair and square trade. The US has been running a trade deficit with Indonesia. Prabowo also instructed his team to offer cooperation in trade, investment, and market access. On July 7, several Indonesian and American companies inked memoranda of understanding (MoUs) that could help balance bilateral trade.

Trump, however, later sent letters to many countries in Indonesia. He said he would slap 32 percent tariffs on Indonesia unless they managed to reach a trade deal by August 1. This prompted Prabowo to send his chief negotiator, Airlangga Hartarto, back to the US again for another round of negotiations. Prabowo had also spoken to Trump by phone after his tariff letter. It was in this phone call that the countries reached a trade agreement that saw a 13 percentage point decrease in the import tax that Indonesia would face, now down to 19 percent. 

On July 22, the White House released a joint statement on reciprocal trade with Indonesia. The statement disclosed more details of what both sides had agreed on. The two countries will work on a final agreement set to be signed by both governments.

"This agreement is part of a comprehensive package of cooperation covering tariffs, non-tariff measures, and strengthening commercial relations. Indonesia was one of the fastest countries to reach this trade agreement, compared to other partner countries," Haryo said.

He attributed the progress to the "active and dynamic bilateral interactions". 

"Other countries have also replicated the model that Indonesia has implemented with the US," Haryo said.

Airlangga had said that human interactions played a key role in why Indonesia managed to clinch the deal quickly. He said that negotiations should be conducted in a "more intensive and open approach" if one wishes to reach an agreement.

The US -- a $30 trillion economy -- is among Indonesia's top export destinations. Jakarta is hoping that the trade deal will not only expand its market access but also boost export competitiveness. Indonesia also hopes that the new policy will protect the workforce in labor-intensive, export-oriented industries.

Amidst the US tariff fiasco, Indonesia managed to make huge progress in the comprehensive economic partnership agreement (CEPA) negotiations with the European Union (EU). During Prabowo's visit to Brussels, Indonesia and the EU announced a political agreement to advance the much-awaited trade pact.

Add as a preferred source on Google +