Indonesia and the US had earlier agreed on a reciprocal tariff rate of 19 percent, one of the lowest among Asian countries, but that arrangement is no longer the most favorable.
Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso stated here on Tuesday (July 29) that negotiations are ongoing.
“At the time, 19 percent was the lowest. Now, with Japan and the EU getting 15 percent, we are pushing for a better deal,” Moegiarso noted in his remarks at the Bisnis Indonesia Midyear Challenges 2025 forum.
The lower tariffs granted to Japan and the EU come with significant commitments. Japan agreed to purchase US$8 billion worth of US goods, including defense equipment, and to invest US$550 billion in the US.
Similarly, the EU pledged US$750 billion in purchases and US$600 billion in investments.
Indonesia’s current agreement includes providing US$10 billion in investments as well as the purchase of US$15 billion in energy commodities and US$4.5 billion in agricultural goods.
The deal also includes acquiring 50 Boeing aircraft, primarily the 777 model. Despite agreeing to the 19 percent tariff, Indonesia is still awaiting formal implementation by the US Trade Representative (USTR).
Currently, Indonesia is still subject to a general 10 percent tariff imposed by the US since April 2025.
Speaking in connection with President Donald Trump’s proposal to impose a blanket 15–20 percent tariff on countries without formal trade agreements, Moegiarso said Indonesia would seek clarification.
He claimed it would be unfair to impose a blanket rate on countries that made no effort in seeking an agreement with the US on the reciprocal tariffs, as many nations still receive higher rates despite active negotiations with the US.
“It is not fair to impose the (blanket) rate on other countries that do nothing at all (to get their tariff reduced). We will ask USTR to clarify this,” he stated.
Indonesia is eyeing tariff reductions on key commodities exported to the US, particularly products the US cannot produce domestically, such as palm oil, coffee, cocoa, and other agricultural-based products.
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Reporter: Bayu Saputra, Uyu Liman
Editor: Primayanti
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