At the IBC Business Competitiveness Outlook 2025 event in Jakarta, he said the government intends to present the proposal as part of broader bilateral cooperation efforts to mitigate potential tariff hikes under Trump’s leadership.
Indonesia is mulling over suggesting the US to reduce trade tariffs as President-elect Donald Trump prepares to implement a universal tariff policy, the country’s chief economic affairs minister Airlangga Hartarto said recently.
He said the government intends to present the proposal as part of broader bilateral cooperation efforts to mitigate potential tariff hikes under Trump’s leadership.
Several Indonesian products have long faced import tariffs in the United States.
“We are requesting bilateral economic cooperation to reduce tariffs,” Hartarto told a domestic news agency.
The trade cooperation may involve mechanisms such as a free trade agreement (FTA), Airlangga said.
Trump has vowed to impose a 100 per cent tariff on BRICS members if the bloc plans to create a rival currency to the US dollar. BRICS has pushed for reduced reliance on the dollar in global trade. Indonesia officially joined BRICS recently.
Airlangga, however, said US tariffs on Indonesian imports like apparel and footwear are not new.
Indonesia-US bilateral trade reached $34.5 billion in 2023, with Indonesia enjoying a $12-billion surplus. Trade between January and October last year totaled $31.6 billion, maintaining a surplus of $11.5 billion for Indonesia.
Fibre2Fashion News Desk (DS)
