Judul : Airlangga Once Lobbied US Secretary of Treasury, Trump Still Implemented 32 Percent Tariff on Indonesian Products
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Airlangga Once Lobbied US Secretary of Treasury, Trump Still Implemented 32 Percent Tariff on Indonesian Products
Best for you Airlangga once lobbied the US Secretary of the Treasury, but Trump still implemented a 32 percent tariff on Indonesian products.
The 32 percent reciprocal trade tariff is applied to all products from Indonesia entering the US market.
The decision was announced through the President of the United States' (US) social media account, Truth Social.
This was reinforced by an official letter from the White House to President of Indonesia Prabowo Subianto dated July 7, 2025.
"Starting August 1, 2025, we will charge a 32 percent tariff on Indonesia for all products sent to the United States, separate from all sectoral tariffs," wrote Trump in the letter.
"Goods that are re-shipped (transshipped) to avoid tariffs will also be subject to higher tariffs," he added.
Previously, the Coordinating Minister for Economic Affairs Airlangga Hartarto and Finance Minister Sri Mulyani had met with US Secretary of the Treasury Scott Bessent in Washington DC, on Thursday (24/4/2025).
This meeting is part of the bilateral negotiation efforts following the Reciprocal Tariff Policy announced by US President Donald Trump on April 2, 2025.
At the meeting, Bessent expressed his appreciation for the Indonesian government's prompt response after the announcement of the tariffs.
"I am impressed by the letter sent to me by Minister Airlangga, and I believe it is a very good beginning. I thank you because Indonesia continues to maintain this good bilateral relationship," said Bessent, as quoted from an official statement by the Ministry of Economy on Friday (25/4/2025).
Indonesia has become one of the countries that have discussed earlier with the US government regarding reciprocal tariffs and has recorded positive progress in the negotiation process.
Airlangga reemphasized Indonesia's position, which had previously been conveyed to the U.S. Trade Representative (USTR) and the U.S. Secretary of Commerce.
She stated that the government, in accordance with President Prabowo Subianto's instructions, is ready to support efforts to reduce the US trade deficit against Indonesia.
"We support fair and square trade. Indonesia will increase purchases of major commodities such as oil and gas, as well as agricultural products," said Airlangga.
Airlangga added that Indonesia is preparing several deregulation measures, such as simplifying import permits, adjusting quotas, and increasing local content.
In addition, the government also opens up broader cooperation opportunities in the fields of investment, critical minerals, as well as financial and digital economy sectors.
Indonesia also reaffirmed its position as an open and friendly trading partner, including towards the United States.
The government hopes that the tariff negotiation process can start soon following the signing of the non-disclosure agreement with USTR on April 23, 2025.
However, in the end, Trump still implemented the tariffs.
Content of Trump's Letter
In the letter, Trump mentioned that the Indonesia-US trade relationship has been "far from reciprocal" and accused Indonesia's tariff policies and non-tariff barriers of causing a large trade deficit for the US.
"Deficit is a major threat to our economy, even to our National Security," wrote Trump.
It also warned that if Indonesia raises the tariff, "any increase will be added to the 32 percent tariff" imposed by the US.
However, Trump also opened the door for cooperation if Indonesia opens its market:
If you want to open up a previously closed market and remove trade barriers, we could consider adjustments.
"No tariffs if the product is built in the U.S.," added Trump in a letter signed directly from the White House.
This article has been published in Tribunnews.co m
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