Indonesia-US Trade Tariff Talks Enter Final Stage, Government Says

October 9, 2025 | 01:24 pm

TEMPO.CO, Jakarta - The Indonesian Coordinating Minister for the Economy, Airlangga Hartarto, stated that the trade tariff negotiations with the United States have entered the finalization stage. Airlangga mentioned that the Indonesian government is having an intense discussion about the legal drafting of the trade agreement with the United States.

"We are currently finalizing the agreement with the United States. Hopefully, it won't take too long to be resolved," said Airlangga when met at the Jakarta International Convention Center, Senayan, Thursday, October 9, 2025.

The coordinating minister stated that the draft trade agreement with the U.S. specifically addresses the potential for zero tariffs on goods entering Indonesia. In essence, goods that cannot be cultivated in the U.S.—such as palm oil and cocoa—would be automatically tariff-free. "In essence, commodities that can be cultivated in Indonesia, but not in the United States," he said.

Airlangga previously revealed that negotiations on trade tariffs with the United States were halted due to the shutdown led by Donald Trump. The U.S. government had been shut down since October 1, 2025.

Airlangga stated that the Indonesian government is still negotiating the draft trade agreement with the U.S. The shutdown also brought the negotiations to a halt.

"We are still waiting for how long America's shutdown will last, and only then can we start the legal drafting process again," said Airlangga while delivering a speech at the Wealth Wisdom 2025 event organized by Permata Bank in Jakarta, Tuesday, October 7, 2025.

The U.S. government had previously set a reciprocal tariff of 19 percent on Indonesian products. Currently, Indonesia is still lobbying the U.S. government for tariff exemptions on certain export commodities, including cocoa, coffee, and palm oil. According to Airlangga, the reciprocal tariff decrease from 32 percent to 19 percent will benefit five million people working in the textile, furniture, and footwear sectors.

On a separate occasion, the Spokesperson for the Coordinating Ministry for the Economy, Haryo Limanseto, stated that negotiations on reciprocal tariffs are still ongoing. Discussions will continue at the technical level, involving the relevant ministries and institutions. There are still specific points of the agreement that require further detail.

Haryo hopes this situation does not prolong the negotiations and affect their finalization. "We hope the domestic political situation in the U.S. will be resolved soon and not hinder the completion of the negotiations," he said when contacted by Tempo, Monday, October 6, 2025.

Most U.S. government operations have stopped temporarily because the U.S. Congress failed to approve the federal budget before the start of the new fiscal year. Several public services in the country were also suspended. The partial shutdown of U.S. government operations had entered its fifth day on Sunday, October 5, 2025, local time.

Deni Friawan, a Senior Researcher at the Department of Economics, Center for Strategic and International Studies (CSIS), believes that this shutdown could impact Indonesia's exports to the U.S., financial market uncertainty, and the ongoing tariff negotiation process.

However, Deni believes the effects depend on the duration of the shutdown. The impact of the shutdown will not be significant if it lasts less than 2-3 weeks. If it lasts more than a month, as it has before, the impact will be significant.

Ilona Estherina and Anastasya Lavenia contributed to this article

Editor's Choice: Indonesia's Airlangga: Tariff Talks to Resume Only After US Political Crisis Ends

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