Finance Minister Confident US Trade Investigation Will Not Disrupt Indonesia's Trade Prospects

Finance Minister Purbaya Yudhi Sadewa has expressed optimism that a trade investigation being conducted by the United States Trade Representative (USTR) will not disrupt Indonesia’s trade prospects.

He views the investigation as a routine matter in international trade relations and has decided not to take further action regarding the enquiry.

“I think the investigation is fine. Investigations are commonplace,” said Purbaya at the Ministry of Finance in Jakarta on Friday, 13 March 2026.

According to him, Indonesia maintains relative advantages in trade with the United States, particularly because Indonesian goods are more competitively priced compared to American products. This advantage is further supported by lower labour costs, which provide Indonesia with distinct competitive strength. This situation has resulted in Indonesia recording a trade surplus with the United States.

Regarding the potential for tariff increases, which are often linked to a country’s trade surplus status with the United States, Purbaya stated that Indonesia would not be significantly affected if tariff increases are applied equally with other countries. However, the situation would be different if tariffs imposed on Indonesia are higher than those applied to peer nations. A substantial tariff differential—for example, up to 10 per cent—could potentially place pressure on Indonesian trade.

Nevertheless, the state treasurer assured that the government is prepared to implement efficiency measures if necessary.

“We will undertake other efficiency efforts if absolutely necessary. However, the outlook for the future should not require it, even with the investigation from the USTR,” he said.

The United States administration initiated a trade investigation on Wednesday, 11 March 2026, into alleged unfair trade practices by Indonesia, Japan, and numerous other trading partners, following the US Supreme Court’s removal of high import tariff policies.

The US Trade Representative, Jamieson Greer, stated that the investigation aims to expose “a series of unfair trade practices related to excess capacity and manufacturing production” in order to establish new high import tariffs.