Indonesia will not retaliate against Trump tariff, says minister
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The 32 per cent US tariff on Indonesia, one of six hard-hit South-east Asian countries, is set to take effect on April 9.
PHOTO: REUTERS
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JAKARTA - Indonesia will not retaliate against US President Donald Trump’s 32 per cent trade tariff on South-east Asia’s largest economy, its senior economic minister said on April 6 in the government’s first response to the levy.
Chief Economic Minister Airlangga Hartarto said in a statement that Indonesia would pursue diplomacy and negotiations to find mutually beneficial solutions after Mr Trump announced sweeping global tariffs on April 2.
“The approach was taken by considering the long-term interest of bilateral trade relation, as well as to maintain the investment climate and national economic stability,” Mr Airlangga said, adding that Jakarta will support potentially impacted sectors, such as the apparel and footwear industry.
Mr Trump’s tariff on Indonesia, one of six hard-hit South-east Asian countries, is set to take effect on April 9.
The Indonesian government will gather inputs from businesses on April 7 to help formulate strategy to address the US tariff, and will find ways to increase trade with European countries as an alternative to the US and China, Mr Airlangga said.
Jakarta has said it would send a high-level delegation to the US for direct negotiations with the government.
Indonesia posted a US$16.8 billion (S$22.5 billion) trade surplus in 2024 with the US, which was its third-biggest export destination, receiving shipments worth US$26.3 billion in 2024, according to Indonesian government data.
Indonesia’s main exports to the US include electronics, apparel and clothing, and footwear. REUTERS
