Indonesia Offers Win-Win Solution on Tariff Negotiations with US

Coordinating Minister for Economic Affairs Airlangga Hartarto delivers press statement at the Presidential Palace, Jakarta, Monday (04/28). (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto emphasized that all of Indonesia’s approaches and offers in tariff negotiations with the United States aim for a win-win solution for both countries, without favoring one partner country over another.

“What we offered them is similar to what we have done in the country, one of which is deregulation,” Coordinating Minister for Economic Affairs Airlangga Hartarto said in a press statement at the Presidential Palace, Jakarta (04/28).

The President has also expressed appreciation to the intensive efforts done by government officials to strengthen economic and trade relations between Indonesia dan the United States.

Airlangga said that during his visit to the US, he and his team held several strategic meetings with the US high level officials and had achieved important progress.

“During the negotiations, I met the US Trade Representative, Secretary of Commerce Howard Lutnick, Secretary of Treasury Scott Bessent, Director of the National Economic Council, and also other countries’ representatives,” he said.

He went on to say that President Prabowo welcomed the US Government’s positive response to Indonesia’s comprehensive proposal. The proposal covered not only trade tariff, but also non-tariff issues as well as Indonesia’s concrete steps to realize a fair and square trade balance.

“So, their trade balance is around US$19 billion, we offer more than US$ 19.5 billion. Direct trade is US$ 19.5 billion, but we also have some other projects that we will buy from the US,” Airlangga explained, adding that the Indorama is planning to invest US$2 billion in Louisiana for Blue Ammonia. Critical mineral was also discussed during the negotiations, he continued.

He also underlined Indonesia’s request for an equal reciprocal tariff for its main commodities in the US market so that it has an equal level playing field with other countries.

“Whether it is Vietnam or Bangladesh, we want to have an equal level playing field with them,” Airlangga added.

Moreover, in a bid to expedite the implementation of negotiation results, President Prabowo has approved the establishment of three special task forces. They are: first, Special Task Force for Trade, Investment, and Economic Security Negotiation that is tasked to follow up on investment negotiations; second, Special Task Force for Job Creation and Layoff Mitigation; third, Special Task Force for Deregulation that will focus on improving investment climate and speeding up business permits.

The Indonesian Government had also signed a non-disclosure agreement meaning that the negotiations to be kept confidential and only known by both sides. (BPMI) (EST/MMB)