Indonesia Opts for Talks Over Trade War With US

Indonesia has announced it will pursue diplomatic negotiations rather than retaliatory measures in response to President Donald Trump's imposition of a 32% tariff on its goods. 

The decision comes after the US president unveiled a global tariff policy on Wednesday, April 2nd, which heavily impacts several Southeast Asian nations, including Indonesia.

Airlangga Hartarto, Indonesia's Coordinating Minister for Economic Affairs, stated on Sunday, April 6th, that the government's priority is to find a mutually agreeable resolution through dialogue, emphasising the importance of maintaining long-term bilateral trade relations and ensuring economic stability.

"This approach will consider the long-term interests of bilateral trade relations, while maintaining the country's investment climate and economic stability," he said, adding that Jakarta would offer support to sectors likely to be affected, such as the garment and footwear industries.
 

The US tariffs, set to take effect on Wednesday, April 9th, target Indonesia and five other Southeast Asian countries with significant levies.

The Indonesian government is planning to gather data from businesses on Monday, April 7th, to formulate a strategy to mitigate the impact of the US tariffs.

In addition, Jakarta is exploring alternative trade routes with European countries to reduce its reliance on the US and China.

To address the situation directly, the Indonesian government will send a high-level delegation to the United States for direct negotiations with the Trump administration.
 

Indonesia enjoyed a trade surplus of $16.8 billion with the US last year, making the US its third-largest export market.

According to Indonesian government figures, exports to the US were valued at $26.3 billion in 2024. Indonesia’s primary exports to the US include electronic equipment, clothing, and footwear.