A Look at Indonesia-US Trade Balance

TEMPO.CO, Jakarta - The government is still negotiating with the United States to lower trade tariffs. Coordinating Minister for the Economy Airlangga Hartarto hopes that Indonesia can obtain lower tariffs than Vietnam.

Vietnam and the U.S. have reached an agreement on trade tariffs. The U.S. will impose import tariffs on goods from Vietnam at 20 percent. Previously, the U.S. imposed a 46 percent tariff on Vietnam. Indonesia itself is subject to a 32 percent tariff.

"Certainly, Indonesia is waiting for feedback, whether there is still additional feedback related to the ongoing negotiation process," Airlangga said to journalists at Graha Sawala, Central Jakarta, on Wednesday, July 2, 2025.

One basis for the magnitude of these tariffs is the trade balance between the two countries. Indonesia's trade balance with the U.S. is recorded as a surplus. According to data from the Central Statistics Agency (BPS), Indonesia's trade surplus with the U.S. reached US$5.44 billion in the January-April 2025 period. The U.S. is the largest contributor to surplus in Indonesia's bilateral trade relations this year, followed by India (US$3.98 billion) and the Philippines (US$2.92 billion).

Starting from May 2020, Indonesia has recorded a trade surplus for 61 consecutive months. Until May 2025, Indonesia has recorded a cumulative surplus of US$15.38 billion. This surplus is supported by the high value of exports, which reached US$24.61 billion in May alone. Meanwhile, imports were recorded at US$20.31 billion.

Indonesia's export performance to the U.S. increased by 9.68 percent compared to May of the previous year, while imports increased by 4.14 percent in the same period.

Primary Non-Oil and Gas Export Markets

From January to May of 2025, the U.S. became Indonesia's second-largest export destination for non-oil and gas products, after China. The value of Indonesia's non-oil and gas exports to the United States reached US$12.11 billion, second only to China, which recorded US$24.25 billion.

The main commodities contributing to the surplus in the U.S. come from the non-oil and gas sector, such as animal and vegetable fats and oils, mineral fuels, and iron and steel. Meanwhile, the trade deficit in oil and gas commodities with some countries, including the U.S., is much smaller than the surplus in non-oil and gas commodities.

The United States imposes a 32 percent tariff on several products from Indonesia. According to the U.S. government, this policy is a step to reduce the deficit in its trade balance. Under the leadership of Donald Trump, the U.S. considered that Indonesia was implementing various tariff and non-tariff policies that were deemed to hinder access and the interests of U.S. trade.

These complaints are reflected in an official report titled the 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers, released by the U.S. Trade Representative Office (USTR). In the document, the U.S. government noted various barriers it faced in trading with Indonesia.

Alfitria Nefi P, Ilona Estherina, Anastasya Lavenia Yudi, and Antara contributed to the writing of this article

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