Indonesia has announced it will not retaliate against the 32% trade tariff imposed by US President Donald Trump on the Southeast Asian nation, choosing instead to pursue diplomatic and strategic negotiations. The statement came from Chief Economic Minister Airlangga Hartarto on Sunday, marking Jakarta’s first official response to the sweeping trade levies announced last week.
Airlangga emphasized that Indonesia’s approach is rooted in protecting long-term bilateral trade relations and preserving its investment climate and overall economic stability. “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,” he said. He also noted that the government will support sectors likely to be impacted by the tariffs, particularly the apparel and footwear industries.
The new tariffs, which take effect on Wednesday, target six Southeast Asian countries, including Indonesia. In response, the Indonesian government is scheduled to consult with business leaders on Monday to develop a strategic plan. This includes exploring new trade opportunities with European countries to reduce dependency on the US and China.
Airlangga confirmed that a high-level Indonesian delegation will be sent to Washington for direct talks with US officials in an effort to resolve the trade dispute.
Indonesia recorded a $16.8 billion trade surplus with the US in 2024, making it the country’s third-largest export destination. Indonesian exports to the US totaled $26.3 billion last year, with major shipments including electronics, apparel, and footwear.
The government’s decision to prioritize diplomacy highlights Jakarta’s efforts to maintain stable international trade ties amid escalating global economic tensions.
