32 Percent Import Tariff, Airlangga's Subordinates Affirm Indonesia's Global Strategic Partner

JAKARTA - The United States (US) has decided to impose a reciprocal import rate of 32 percent for products from Indonesia, which will take effect on August 1, 2025.

Spokesperson for the Coordinating Ministry for the Economy, Haryo Limanseto, said that the Indonesian government continues to encourage mutually beneficial economic cooperation with the United States through a number of agreements signed on the latest working visit.

Haryo conveyed that the signing of a memorandum of understanding (MoU) between Indonesia and the United States consisted of two types, namely government to government (G-to-G) and business to business (B-to-B).

In the context of business cooperation, he explained, the role of the government is to encourage and facilitate, not as the main party in the transaction so that it can be carried out before the announcement.

"Now this is a sweeter that what is called being conveyed that the deficit has even exceeded the deficit conveyed by the community. Now for the details because this is a business to business, we also have limitations to convey," he said in a media briefing, Wednesday, July 9.

He conveyed that regarding the companies involved, there are several sectors and entities from Indonesia that will sign cooperation, such as in the energy sector through PT Pertamina, the agricultural sector through the FKS Group, the textile sector through the Indonesian Textile Association (API), the food and raw materials sector through PT Sorini Agro Asia Corporindo for corn products, and the Indonesian Flour Producer Association for wheat products.

Haryo emphasized that because most of the agreements were B-to-B, his party had limitations in conveying more detailed information, such as transaction value or cooperation volume because it was still in the negotiation stage or had not yet reached the final agreement.

Regarding future strategies in negotiating with the US government, he said, the main negotiation process has actually been completed, and proposals from Indonesia are even considered to be one of the best.

In the future, he said that he would continue to encourage the narrative that Indonesia is a strategic country, with large natural resources and strong economic potential and hoped that the US government could reconsider Indonesia's position in the map of global economic relations.

"We hope that the American side will also reconsider the position of Indonesia, which so far and also so far we have fulfilled all requests and it is also possible for the deficit to be handled. So we convey that the considerations of the negotiating team are that Indonesia is a strategic country," he said.

However, Haryo said, the government understands that the US is currently carrying out a similar process to many other countries, so decisions and follow-up from the US require complex time and consideration.

"Indonesia, like friends, also know that they have tried to find new market targets for Yusefa and other Yusefapa, which are already in the process of supporting bilateral cooperation because they are to open other market nations," he explained.

He hopes that this market diversification step is expected to strengthen Indonesia's position in the global supply chain.

Haryo emphasized that this negotiation process is not over and the Indonesian government will continue to have a dialogue, respond well, and fight for national interests.

"We do not stop here, we will continue to negotiate, will respond well, yes and we will convey that the considerations that Indonesia is a strategic country that needs priority from the United States government as well," he concluded.