Indonesian Diplomacy Successful, US Tariffs Reduced to 19%

Jakarta – Indonesian President Prabowo Subianto stated that the results of diplomacy with United States President Donald Trump have succeeded in reducing trade tariffs on Indonesian products from 32% to 19%.

“We’ve calculated everything. We’ve negotiated everything. We’ve also considered everything. What’s important to me is my people. What’s important is protecting our workers,” said President Prabowo.

According to Prabowo, this agreement emerged from a long and difficult negotiation process, but it resulted in a decision that favors national interests, especially in labor-intensive sectors such as textiles, footwear, and electrical equipment.

“We must ensure our exports remain competitive. And with a 19 percent tariff, we now have a stronger position compared to other countries. Vietnam still has a 20% tariff, India 26%, and even China 55%. This is a major achievement for our nation,” he emphasized.

United States President Donald Trump confirmed the tariff reductions for Indonesian products in a statement and stated that as part of the agreement, certain US goods will enter Indonesia without additional tariffs.

Farhan A. Dalimunthe, Executive Director of the Nalar Bangsa Institute, praised President Prabowo’s move.

“I see this as an important milestone in Indonesia’s economic diplomacy. President Prabowo has shown that Indonesia can be an equal partner with a major power like the US,” Farhan said.

He assessed that this achievement will not only impact trade figures but also strengthen Indonesia’s strategic position in the region.

“This is a diplomatic victory that has a direct impact on MSMEs, national exporters, and other real sectors. Mining, textiles, and electronic components will be greatly assisted,” he said.

Farhan also stated that the purchase of Boeing aircraft and food imports from the US were made with careful calculation.

“This agreement does not show that we are submitting. Instead, we are developing a mutually beneficial strategy,” he added.

Apindo Chairwoman Shinta Kamdani responded that Indonesia currently has significant room to maintain export competitiveness.

“This tariff reduction opens up an opportunity to maintain our position in the US market, especially for textiles, furniture, and fisheries,” she said.

However, Shinta reminded that several other countries are also negotiating with the US.

“We need to carefully monitor their final position because it will affect global export competition,” she explained.

Regarding the entry of US goods without tariffs, Shinta explained that most of these products were previously subject to low tariffs.