Trump Tariff Applies, Trade Minister Budi: Negotiations Still Ongoing

JAKARTA - The Minister of Trade (Mendag) Budi Santoso revealed that negotiations with the Government of the United States (US) are still ongoing, even though the 19 percent reciprocal tariff for Indonesia has been implemented.

"Yesterday, the US Executive Order was like that (it was on August 7). So we are still in the negotiation process," he said when met at the Office of the Ministry of Trade, Jakarta, Thursday, August 7.

Budi said the government was still negotiating with the US side until September 1, 2025. He believes the reduction in tariffs can still occur, because previously there was also a change in the rate from 32 percent to 19 percent.

Furthermore, Budi said that Indonesia was still given the opportunity by US President Donald Trump to negotiate.

"Now the reciprocal will be enforced on the 7th, while we negotiate again. Because we are given the opportunity to negotiate. Hopefully, before September 1 it will be finished. We will still try to make it better," he said.

Budi said this opportunity would be used to ask for a 0 percent import rate for commodity commodities that were not produced in the United States.

"We also want that there are commodities that are not produced by America that can get 0 percent (free tariffs)," he said.

For your information, the reciprocal tariff imposed by the US on Indonesia comes into effect today, Thursday, August 7. This policy has also been announced by the US to 82 other countries.

Meanwhile, Indonesia managed to reduce the amount of import rates imposed by the US, from 32 percent to 19 percent. The amount of tariffs obtained by Indonesia is one of the lowest in the Southeast Asia region.