TEMPO.CO, Jakarta - Indonesia plans to boost imports from the United States (U.S.) in an effort to narrow the trade deficit it currently faces. This move comes in response to the 32 percent reciprocal tariff imposed by the U.S. on Indonesian products.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the decision is part of ongoing negotiations.
"Of course, we will increase the volume of purchases. So that the US$18 billion trade deficit can be reduced," said Airlangga during a press conference at his office on Monday, April 7, 2025.
Reciprocal tariffs are additional duties applied by the U.S. to countries running a trade surplus with the US. In contrast, the US records a trade deficit with these nations. U.S. President Donald Trump officially announced the policy on April 2, 2025, targeting several countries around the world.
Indonesia has been hit with a 32 percent tariff. According to the United States Trade Representative (USTR), the U.S. recorded a trade deficit of US$17.9 billion with Indonesia in 2024. This figure represents a 5.4 percent increase, or US$923 million, from 2023.
Hence, the government plans to reduce the difference in deficit value, which is the basis for the imposition of the additional tariff by the U.S. government.
There are approximately 10 leading export and import commodities that form the basis of negotiations for non-tariff barriers or Non-Tariff Measures.
"The President's directive is to fill the delta of our imports and exports, which can reach US$18 billion, with products that we import including wheat, cotton, and also one of them is oil and gas products," he said.
The reciprocal tariffs imposed by the U.S. will take effect starting on April 9, 2025. There are several products exempted from the reciprocal tariff, including protected goods, such as medical and humanitarian goods.
In addition, products that have been subjected to tariffs under Section 232, namely steel, aluminum, cars and car parts, strategic products such as copper, semiconductors, wood products, pharmaceuticals, bullion, as well as certain energy and mineral products that are not available in the U.S..
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