Trump's Tariff Drops To 19 Percent, Deputy Minister Of Investment: US Considers Indonesia's Existence

JAKARTA - Deputy Minister of Investment and Downstreaming / Deputy Head of the Todotua Investment Coordinating Board (BKPM) Pasaribu assessed that the reduction in the reciprocal rate given by the United States Government (US) shows that Indonesia has a strategic position.

For your information, US President Donald Trump has announced that Indonesian goods entering the US will still be subject to reciprocal rates. However, the figure was reduced from the previous 32 percent to 19 percent.

In fact, the reciprocal rates imposed on Indonesia are much lower than other ASEAN countries, such as Vietnam, which are subject to 20 percent, the Philippines 20 percent, Malaysia 25 percent, Brunei Darussalam 25 percent, Thailand 36 percent, Cambodia 36 percent, Myanmar 40 percent, and Laos 40 percent.

"If I look strategically in Southeast Asia, this is a significant decline. This means that America itself is very considering the existence of Indonesia," said Todotua when met in St Regis, Jakarta, Wednesday, July 16.

Regarding Indonesia's investment potential to the US, Todotua said there were no additional investment plans. However, he said Indonesia already has investment in the US through SOEs, such as PT Pertamina (Persero).

Then regarding the energy products that Indonesia will import from the US as a trade agreement, Todotua explained that this was still under discussion.

"We are also consolidating this, because it's new news," said Todotua.

Previously reported, United States President Donald Trump announced that his party had reached a trade agreement with Indonesia.

In the agreement, goods from Indonesia will be charged a tariff of 19 percent, while exports from the United States to Indonesia will not be taxed.

"Indonesia will pay the United States a 19 percent Tariff for all of the goods they export to us, while US Exports to Indonesia will be Tariff-Free and Non-Party," Trump wrote via the @realDonaldTrump account on Truth Social social media on Tuesday, July 16, 2025.

Trump conveyed this agreement as a historic agreement reached after speaking directly with President Prabowo Subianto.

He claims that this important agreement allows the United States to open all access to the Indonesian market and make for the first time in History.

In addition, as part of the deal, Trump said Indonesia is also committed to investing in a number of American products.

"As part of the agreement, Indonesia has committed to buying 15 billion US Dollars in US Energy, 4.5 Billion US Dollars in American Agricultural Products, and 50 Boeing Jets, many of which are 777," he said.