Deputy Investment Minister Says Indonesia's Strategic Position Led to US Reciprocal Tariff Reduction from 32% to 19%
JAKARTA — Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu stated that Indonesia holds a strategic position, as reflected in the reduction of United States reciprocal tariffs on Indonesia from 32% to 19%.
"As I see it, strategically within the Southeast Asian region, this is the most significant reduction. This means the United States truly considers Indonesia's importance," said Todotua in Jakarta on Wednesday (16/7).
The statement relates to US President Donald Trump's announcement that a 19% import tariff would be imposed on Indonesian products entering the US, based on direct negotiations he conducted with Indonesian President Prabowo Subianto. The tariff dropped drastically from the previously set rate of 32%.
The updated US reciprocal tariff on Indonesian products also makes Indonesia the country with the second-lowest US reciprocal tariff in ASEAN after Singapore, which faces a rate of 10%.
Indonesia's reciprocal tariff is thus lower compared to Vietnam (20%), the Philippines (20%), Malaysia (25%), Brunei Darussalam (25%), Thailand (36%), Cambodia (36%), Myanmar (40%), and Laos (40%).
Regarding the negotiation outcomes, Todotua said that the purchase of energy commodities from the United States is still at the discussion stage. He also explained that Indonesia has no current plans to increase investment in the United States.
"We are still consolidating because the news is still fresh," said Todotua.
US President Donald J. Trump announced that a "big deal" had been reached between himself and Indonesia through direct dialogue with President Prabowo Subianto. Trump stated that Indonesia had agreed to purchase US energy worth US$15 billion (approximately Rp244 trillion), US agricultural products worth US$4.5 billion (approximately Rp73.1 trillion), and 50 Boeing jets.
As a result of the negotiations, Trump declared that a 19% import tariff would be applied to Indonesian products entering the US.
"As I see it, strategically within the Southeast Asian region, this is the most significant reduction. This means the United States truly considers Indonesia's importance," said Todotua in Jakarta on Wednesday (16/7).
The statement relates to US President Donald Trump's announcement that a 19% import tariff would be imposed on Indonesian products entering the US, based on direct negotiations he conducted with Indonesian President Prabowo Subianto. The tariff dropped drastically from the previously set rate of 32%.
The updated US reciprocal tariff on Indonesian products also makes Indonesia the country with the second-lowest US reciprocal tariff in ASEAN after Singapore, which faces a rate of 10%.
Indonesia's reciprocal tariff is thus lower compared to Vietnam (20%), the Philippines (20%), Malaysia (25%), Brunei Darussalam (25%), Thailand (36%), Cambodia (36%), Myanmar (40%), and Laos (40%).
Regarding the negotiation outcomes, Todotua said that the purchase of energy commodities from the United States is still at the discussion stage. He also explained that Indonesia has no current plans to increase investment in the United States.
"We are still consolidating because the news is still fresh," said Todotua.
US President Donald J. Trump announced that a "big deal" had been reached between himself and Indonesia through direct dialogue with President Prabowo Subianto. Trump stated that Indonesia had agreed to purchase US energy worth US$15 billion (approximately Rp244 trillion), US agricultural products worth US$4.5 billion (approximately Rp73.1 trillion), and 50 Boeing jets.
As a result of the negotiations, Trump declared that a 19% import tariff would be applied to Indonesian products entering the US.