April 27, 2025 | 11:53 pm
TEMPO.CO, Jakarta - Negotiations regarding tariffs between the Indonesian and United States governments are currently underway. Coordinating Minister for Economic Affairs Airlangga Hartarto recently stated that the U.S. government appreciates Indonesia's proactive approach.
"Both parties have agreed to a more intensive process at the technical level," Airlangga announced during a virtual press conference in Washington, D.C. on Friday, April 25, 2025.
Finance Minister Sri Mulyani Indrawati also participated in the press conference. Indonesia is among the initial group of 20 countries involved in this negotiation process.
Here are the key developments in Indonesia's negotiations with the U.S.:
Establishment of a Working Group
Airlangga announced the formation of a joint working group by both teams to accelerate the negotiation discussions. Furthermore, Indonesia has signed a non-disclosure agreement (NDA) with the Office of the United States Trade Representative (USTR).
"As a next step, the Indonesian government will conduct internal reviews and consultations with domestic stakeholders. We will also maintain communication with the American side to continue the negotiation process at the technical level," Airlangga explained.
Outlining Five Potential Advantages
Airlangga asserted that Indonesia's proposal to the U.S. is fully aligned with national interests. "This offer is structured to ensure a balance, yielding at least five key benefits," stated the former Chair of the Golkar Party.
These benefits include: first, addressing national energy needs and maintaining energy resilience; second, advocating for improved market access for Indonesian exports to the United States through competitive tariff policies; third, implementing deregulation to enhance the ease of doing business, trade, and investment, thereby creating jobs; fourth, securing added value through collaboration in supply chains, particularly within critical mineral industries; and fifth, gaining access to knowledge and technology across various sectors, including health, agriculture, and renewable energy.
Engaging with the Business Community
Airlangga noted that, throughout the negotiation process, the Indonesian government has actively sought input from a diverse range of entrepreneurs and business associations. These include the Semiconductor Industry Association, the US-ASEAN Business Council, and the United States-Indonesia Society (USINDO).
Additionally, prominent corporations such as Amazon, Boeing, Microsoft, and Google have been consulted. "All of these stakeholders are supportive of Indonesia's endeavors to achieve equitable outcomes," he affirmed.
Addressing Concerns Regarding QRIS
In the 2025 National Trade Estimate Report on Foreign Trade Barriers, the USTR also identified the Quick Response Code Indonesian Standard (QRIS) and the National Payment Gateway (GPN) as potential impediments to trade. Regarding this, Minister Airlangga clarified that Indonesia welcomes foreign operators, including Mastercard and Visa.
"There are no changes for the credit card sector. Concerning the gateway sector, they are open to participate in the front end and engage directly," he stated, emphasizing that all external entities seeking collaboration are afforded an equal opportunity.
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