Bambang Ismoyo, Washington – Indonesia is among the first countries officially accepted by the United States to enter formal negotiations over tariffs imposed during former President Donald Trump's administration. The two countries have agreed to a 60-day timeline to finalize a cooperation framework.
Chief Economic Affairs Airlangga Hartarto announced the development in a virtual press briefing on Friday, stating that Washington had responded positively to Indonesia's proposal to initiate talks.
"Indonesia is among the first countries to be accepted. Other nations that have also opened communication with the US include Vietnam, Japan, and Italy," Airlangga said.
Initial meetings between the Indonesian and US delegations have already resulted in agreement on a technical roadmap for the discussions. The negotiations, which will be conducted in three rounds, will focus on trade and investment partnerships, critical mineral cooperation, and efforts to strengthen supply chain resilience.
"The discussion format has been agreed upon, covering key sectors including energy, minerals, and supply chains," said Airlangga. "We're optimistic that within 60 days, this framework will lead to a formal agreement."
As part of its negotiation strategy, Indonesia plans to increase imports of US energy products and agricultural commodities. The move aims to reduce trade imbalances and demonstrate goodwill in the ongoing dialogue.
Proposed imports include liquefied petroleum gas (LPG), crude oil, gasoline, and agricultural goods such as wheat, soybeans, and soybean milk.
Indonesia is also considering a potential reduction in value-added tax (VAT) on select US goods and easing local content requirements for the telecommunications and technology sectors.
"Indonesia is also facilitating American companies operating here, including matters related to licensing and incentives," Airlangga added.
The talks come in response to a 32 percent import duty on Indonesian products that remains in effect. According to Indonesia's Central Statistics Agency (BPS), the country posted a $14.5 billion trade surplus with the U.S. in 2024. However, American data indicates a wider gap, prompting a push by Washington to rebalance trade flows.
Energy and Mineral Resources Minister Bahlil Lahadalia assured that increasing crude oil, LPG, and refined fuel imports from the US would not burden the state budget.
"We are not increasing our import volume or adding new quotas," Bahlil said following a cabinet meeting in Jakarta on Thursday. "We're simply switching some of our current imports from suppliers in the Middle East, Africa, and Southeast Asia to the US."