Indonesia, US Advance Tariff Talks Amid 32% Tariff Threat

Indonesia is actively engaging in negotiations with the United States to address the new 32% tariff imposed by President Donald Trump, set to take effect on August 1, 2025. Indonesian officials, including Coordinating Minister for Economic Affairs Airlangga Hartarto, have held positive discussions with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, aiming to reduce tariffs and expand cooperation in critical mineral sectors like nickel, copper, and cobalt. Indonesia has proposed reducing tariffs on U.S. products to nearly zero and pledged to increase purchases and investments in American goods by approximately $34 billion, with several Indonesian companies signing preliminary agreements with U.S. firms in agriculture and energy sectors. Despite the tariffs, Indonesia remains committed to strengthening commercial relations and maintaining a balanced trade partnership, leveraging both government-to-government and business-to-business channels. Analysts note Indonesia's limited leverage in these talks, but the government continues to pursue mutually beneficial agreements to mitigate the impact of the tariffs. The U.S. tariff announcement, part of a broader strategy affecting 14 countries, was delayed by 90 days to allow for negotiations, which Indonesia is optimistic about continuing.