Import Tariff Agreement To 19 Percent Not Just Demand Market Access, But Investment

JAKARTA - The Minister of Trade (Mendag) Budi Santoso said that the reciprocal tariff agreement between Indonesia and the United States (US) would not only demand market access, but there would also be new investments from Uncle Sam's country.

"Actually, America is not the only market access we demand. Because it turns out that it will also invest," Budi said as quoted by ANTARA, Wednesday, July 16.

With this agreement, Budi continued, Indonesia will get investment from the US for several commodities, one of which is through the energy sector.

"So if there was a concern, for example oil. Because later it will also invest in Indonesia. This means that there are several commodities that will be invested in Indonesia," he said.

According to Budi, the 19 percent reciprocal tariff agreement aims to support the domestic industry. Because there are many raw goods and capital goods that will be imported from America.

Some products from the United States, such as wheat and soybeans, currently do not require an entry rate or 0 percent. Indonesia is also considered unable to produce these two commodities.

"So if we import wheat, then the soybeans are also 0 percent and we are not producing. This means that we really need that product. So this is actually an opportunity for us to support the domestic industry," he added.

United States President Donald Trump stated that the import rate of 19 percent will be applied to Indonesian products entering the US, based on direct negotiations he made with Indonesian President Prabowo Subianto.

"Indonesia will pay a 19 percent tariff to the United States for all imported goods from them to our country," Trump said regarding the agreement reached with Indonesia in terms of import rates, as monitored from Truth Social social media in Jakarta, Wednesday.

The new value shows that an agreement has been reached to reduce US import rates for Indonesian products from the 32 percent mark first announced by Trump in April.

Until early July, Trump was still adamant about maintaining a 32 percent tariff against Indonesia, as the White House's letter on July 7, 2025 addressed by the US President to President Prabowo.