Government Targets Trump Tariff Negotiations Completed September 2025

President of the United States, Donald Trump. (Photo: Doc. Antara)

JAKARTA - The Indonesian government is still continuing intensive discussions with the United States (US) regarding the reciprocal tariff policy. However, the government targets negotiations to be completed in September.

Trade Minister Budi Santoso said negotiations between the Indonesian-US government were still ongoing until an agreement was reached. He also believes that the import rate of 19 percent for such Indonesian products may still be lowered again.

"Indeed, we get 90 percent of the reciprocal one, it applies 7 days after July 31, right? And now the negotiation process is still running, hopefully before September 1 (2025) it will be finished," Budi said at a press conference, at the Ministry of Trade office, Jakarta, Monday, August 4.

Budi admitted that he had not been able to divulge what types of commodities were not produced in Uncle Sam's country, because the negotiation process was still ongoing. However, he opened up opportunities for lower tariff reductions for some commodities.

"For commodities, maybe I haven't told you what commodities are. But at least in the negotiation process later we also want to get a reduction in tariffs such as commodities that are not owned or not produced by America," he said.

For your information, on July 31, the US President, Donald Trump, signed a decree that officially charges starting from 15-41 percent for products supplied to the US from more than 60 countries.

The tariff was originally expected to take effect on Friday, August 1, but the latest report said that the tariff would only be effective on August 7, 2025.

Previously, the Minister of Trade Budi Santoso began to anticipate Indonesian product competitors to the United States (US) market. This step follows the reciprocal tariff plan that will take effect in the near future.

Currently, continued Budi, his party calculates the potential of Indonesian products to the US market at a new agreed rate. Including, mapping out competing countries for similar products in the market.

"We have also started peeking at 10 of our export products, our main products, who are the competitors, how many competitors out of the 10 products get a resipprocal rate and I think we are still competitive with the rates given to our competitors," said Budi.

Budi also said that the 19 percent tariff for Indonesian products is still better than a number of neighboring countries, including Malaysia, the Philippines, Thailand, and Cambodia, which are subject to the same tariff, which is 19 percent.

Meanwhile, continued Budi, Vietnam is subject to tariffs of 20 to 40 percent, Brunei Darussalam 25 percent, and Laos and Myanmar at 40 percent.

"If we look at us, we get a 19 percent reciprocal rate, meaning this is a fairly good tariff or a small tariff in Asean countries including several countries such as Malaysia, the Philippines and Thailand," he said.

Even so, Budi said that his party would continue to calculate the potential of the US market for Indonesian products. The goal is to find out interest in Indonesian products.

"We are looking at the market in America again, meaning that if the market to America continues to be enthusiastic, it means that our chances will be even greater because we get better rates than other countries," he said.