Trump Lowers Import Tariffs To 19 Percent For Indonesia, Can You Still Negotiate?

Minister of Trade Budi Santoso (Photo: Antara)

JAKARTA - The United States (US) government has set a reciprocal tariff of 19 percent for Indonesia. This figure has dropped from the position of 32 percent. This policy will take effect on August 1.

Then, while waiting for this policy to take effect, can the tariff still be done?

The Minister of Trade (Mendag) Budi Santoso said that while waiting for the tariff to take effect, the Indonesian government hopes to continue to get the low tariff as it is today.

"The tariff is 19 percent, in ASEAN it is still the lowest. Hopefully, it will continue like that until August 1," Budi said when met at the Ministry of Trade, Jakarta, Thursday, July 17.

When asked whether the Indonesian government was still negotiating with the US side, Budi did not answer with certainty. He only emphasized that the government hopes that the determination of this policy can run smoothly.

"Yes, basically on August 1 it will come into effect. Hopefully everything goes smoothly," he said.

Despite being charged Trump's tariff, Budi said Indonesia would also get two bonuses. First, the opportunity for foreign investment to come. Second, the increase in exports from incoming investments.

"Now it means we have advantages. If we have advantages, it means that this can attract foreign investment. Foreign investment comes to Indonesia to be able to export to America. So there are two that we get, incoming investment and both of our exports increase," he explained.

Budi also said that it is also believed that the opportunity to increase exports will not decrease with the trade agreement with the European Union which will be completed.

The EU-CEPA has also been completed. It's just a matter of this process later with the new market in EU, in America, hopefully, our exports, which we are optimistic will continue to increase," he said.