The incentives aim to encourage the imports of US products and maintain the competitiveness of Indonesian exports to the US.
The reciprocal tariff of 32 percent imposed by the US on Indonesia will come into effect on April 9, 2025, unless negotiated further.
"Indonesia will prioritize the negotiation path and not take retaliatory action, in line with other ASEAN countries," Hartarto said in a statement released on Wednesday.
"We are trying to negotiate by revitalizing the Indonesia-US Trade and Investment Framework Agreement (TIFA), which has been in effect since 1996," he added.
The minister said he will pursue several strategic policies as a negotiation measure in response to US tariffs.
The policies include deregulating non-tariff measures (NTMs) through the relaxation of domestic component level (TKDN) for information and communication firms from the US, such as GE, Apple, Oracle, and Microsoft.
They further include evaluating restriction policies and accelerating the halal certification process.
According to the statement, the two countries also discussed policy steps to maintain the balance of trade in goods.
Hartarto informed that the Indonesian government will prepare fiscal and non-fiscal incentives to encourage imports of US products and maintain the competitiveness of Indonesian export products to the US while prioritizing national interests.
In response, Ambassador Lakhdhir said that amid negotiation initiatives with the US from various countries affected by President Trump's tariff policy, the US Embassy in Jakarta is committed to supporting communication and negotiation efforts with the Indonesian government.
"We have talked with the secretary of commerce and the United States Trade Representative (USTR) regarding the Indonesian government's plan to negotiate, and we are ready to arrange a meeting plan with other strategic parties, if needed," she added.
Related news: Indonesia mulls increasing oil, LPG imports from US
Related news: A silver lining in the US tariff policy for Indonesia's economy
Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: Rahmad Nasution
Copyright © ANTARA 2025
