Jakarta, shesocial Indonesia
–
Minister of Trade Budi Santoso stressed that the government is still continuing the process of negotiating trade tariffs with
United States of America
(US), even though the US President
Donald Trump
has determined
tariff
Reciprocal by 19 percent for Indonesia is valid on August 7, 2025.
“Now the process is still running yes, indeed the reciprocal we get 19 percent is valid seven days after July 31 if the announcement is yes. And now the negotiation process is also still running. Hopefully before September 1 has been completed,” he said at a press conference at the Ministry of Trade, Central Jakarta, Monday (4/8).
In the negotiating process, the government continues to encourage the reduction in tariffs for certain commodities, especially those that are not owned or not produced by the land of Uncle Sam.However, Budi has not conveyed in detail the products in question.
“For commodities (which are charged 19 percent), maybe I have not conveyed what commodities, but at least in the negotiation process we will also want to get a tariff reduction. Yes, such as commodities that are not owned or not produced by America,” he explained.
Regarding the impact of tariffs on export performance, Budi said the export increase target of 7.1 percent this year was still maintained, although the condition of the US market is still a concern.
“Indeed, we are a surplus before reciprocal. Now we must also anticipate what American markets,” he said.
He considered the reciprocal tariff of 19 percent received by Indonesia was among the lowest in the ASEAN region, except Singapore which managed to get a tariff of only 10 percent.Therefore, Indonesia’s position is considered still quite competitive in the US market.
“If we see we get a reciprocal rate of 19 percent. This means that this is a pretty good tariff or a small tariff in ASEAN countries, including several countries such as Malaysia, the Philippines, and Thailand,” he explained.
However, he underlined that the current tariff scheme no longer provides equivalent level of competition as before when all countries were subject to a uniform most favored nation (MFN) rate.
“When we want to start our exports, we don’t start from the start, not starting from zero anymore. Why? If we used to compete with other countries at the same level, namely at the MFN rate level. Now it is different, there are low tariffs, there are high tariffs,” he explained.
Budi also provided illustrations related to Indonesian competitor countries in American export markets such as China, Vietnam and India which are currently subject to higher rates.This opens opportunities for Indonesian export products to remain competitive.
“For example like this, we used to compete with China, Vietnam, India. But the three of them are also higher,” he said.
However, according to him, the condition of the US market remains a determining factor.If the demand from the market remains high, then Indonesia’s export opportunities will remain wide open.
“It means that if the market to America remains passionate, it remains good, it means that our chances will be even greater. Because we get better rates than other countries,” he said.
At present, Budi said that his party was analyzing 10 main products of RI exports and tariffs charged against competitors from other countries.Based on initial observations, Indonesia is still in a competitive position.
“So we continue to make efforts and we have also started to peek out of our 10 export products, our main products, who are competitors. Competitors from the 10 products can get reciprocal rates. And we think, I think we are still competitive with the tariffs given to our competitors’ countries,” he explained further.
[Gambas: shesocial video]
(DEL/AGT)
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