Indonesia to Send High-Level Delegation to Washington to Negotiate Trump-Era Tariffs

JAKARTA, investortrust.id – The Indonesian government will send a senior delegation to Washington to negotiate the 32% reciprocal tariffs imposed by the administration of United States President Donald Trump. The government is also assessing the broader impact of the tariffs on Indonesia’s export competitiveness, amid efforts to simplify domestic regulations to maintain economic resilience.

Hasan Nasbi, Head of the Presidential Communication Office, stated on Friday that the government is conducting a thorough evaluation of the economic consequences stemming from the US’s new tariff policy. In a move seen as protectionist, President Trump signed an executive order on Wednesday imposing a 32% tariff on Indonesian goods, a sharp increase from the previous general tariff rate of 10% applied to all nations.

“In parallel, the government dispatchs a high-level lobbying team to the United States to engage in direct negotiations with the US government,” said Hasan Nasbi in Jakarta.

Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that the tariffs would significantly impact Indonesia's export competitiveness in the US market. He noted that key exports including electronics, textiles and textile products, footwear, palm oil, rubber, furniture, shrimp, and seafood are particularly vulnerable.

“The government is currently quantifying the impact of these tariffs on affected sectors and on the broader economy. We will also implement strategic policies to mitigate potential adverse effects,” Airlangga stated in a written announcement on Thursday.

The 32% tariff, which will be enforced starting Wednesday, April 9, 2025, is part of a broader shift in US trade policy aimed at reducing trade deficits and repatriating manufacturing jobs. It follows findings outlined in the 2025 National Trade Estimate Report issued by the Office of the United States Trade Representative, which raised concerns about Indonesia’s regulatory practices and market access barriers.

Airlangga noted that the Indonesian government has been preparing since early 2025 for potential shifts in US trade policy. A cross-ministerial team, including diplomatic representatives in Washington and domestic business stakeholders, has been actively coordinating responses. He emphasized that the government is prioritizing the stability of Indonesia’s sovereign bond yields and foreign exchange liquidity to preserve investor confidence and macroeconomic stability.

“Together with Bank Indonesia, we are committed to maintaining Rupiah exchange rate stability and ensuring foreign exchange liquidity to support business operations,” he said.

In alignment with President Prabowo’s directive, the Red and White Cabinet has initiated regulatory reforms focused on eliminating non-tariff barriers that have hindered exports. These structural changes are part of a broader strategy to enhance Indonesia’s global competitiveness, attract investment, and sustain economic growth.

The government is also engaging with Malaysia, as the current chair of the Association of Southeast Asian Nations, to pursue a coordinated regional response. All ten ASEAN member countries are reportedly affected by the US tariff hike.