US Commerce Secretary Welcomes Indonesia’s Concrete Trade Proposal
Main Takeaways
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JAKARTA, Investortrust.id – Indonesia has gained positive momentum in its effort to ease the impact of the United States’ 32 percent reciprocal tariff, as the US Commerce Secretary acknowledges Jakarta’s concrete and mutually beneficial trade proposal during a high-level meeting in Washington DC.
Coordinating Minister for Economic Affairs Airlangga Hartarto, who leads Indonesia’s negotiating team, met with United States Secretary of Commerce Howard Lutnick to present the country's formal offer, which includes a significant increase in energy and agricultural imports from the US, as well as cooperation on critical minerals and investment.
In his statement on Sunday, Apr. 20, 2025, Airlangga said, “We thank Secretary Lutnick for the opportunity to conduct tariff negotiations and reaffirm Indonesia’s commitment to fair and balanced trade.” He noted that Lutnick described Indonesia’s proposals and demands as “very concrete and beneficial for both countries.”
Proposal Includes Energy, Agricultural Imports
As part of its proposal, Indonesia has committed to boosting imports of key US goods to help narrow the US trade deficit. The offer includes increased purchases of crude oil, liquefied petroleum gas (LPG), and gasoline, alongside imports of agricultural commodities such as soybeans, soybean meal, and wheat—products not produced domestically in Indonesia.
The initiative comes in response to the reciprocal tariff policy reinstated by US President Donald Trump, which targets countries contributing to what Washington sees as unfair trade imbalances.
Airlangga also outlined Indonesia’s readiness to resolve non-tariff barriers, a key concern raised by US businesses operating in the Indonesian market, and to advance cooperation in the critical minerals sector, an area seen as strategic for future energy and industrial supply chains.
US Receptive to Indonesia’s Initiative
Lutnick praised Indonesia for its clarity and pragmatism in the proposal, contrasting it with other countries’ submissions which he said have yet to meet the US administration’s expectations. He also endorsed Indonesia’s timeline, agreeing that the negotiations could be finalized within 60 days.
To support this process, he advised both sides to immediately set a detailed technical discussion schedule with the US Department of Commerce (DoC) and the Office of the United States Trade Representative (USTR).
“We appreciate Indonesia’s concrete steps in pursuing tariff negotiations. Going forward, the United States and Indonesia will continue to strengthen mutually beneficial trade relations,” Lutnick said.
High-Level Delegation and Strategic Talks
Airlangga was accompanied by a top-level delegation including Deputy Finance Minister Thomas Djiwandono, National Economic Council Vice Chair Mari Elka Pangestu, and Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso. Also present were Deputy Minister for International Economic Cooperation Edi Prio Pambudi, Director General for International Trade Negotiations at the Ministry of Trade Djatmiko Bris Witjaksono, and Indonesia’s chargé d'affaires in Washington DC, Ida Bagus Made Bimantara.
Indonesia's delegation was among the first to be received by US authorities during the initial week of the tariff postponement period. Other nations, including Japan and Argentina, had also initiated talks, but Indonesia’s early and favorable reception highlights the strategic value Washington places on the bilateral relationship.
The meeting followed an earlier virtual discussion between Airlangga and Lutnick, which helped foster a cordial and productive in-person session that lasted over 90 minutes at the Department of Commerce headquarters on Thursday, Apr. 17.
Tariff Policy and Institutional Roles
Under President Trump’s directive, Lutnick—alongside USTR Ambassador Greer and Secretary of Treasury Scott Bessent—has been tasked with overseeing the implementation of the US’s trade tariff policies. The Department of Commerce plays a central role in shaping these policies, particularly in international trade strategy, while the USTR is responsible for technical negotiations and enforcement.
This latest development signals a rare diplomatic opening for Indonesia, potentially enabling the country to secure a tariff relief deal that could shield its exporters from mounting trade pressures.