Indonesia Approaches US Following Imposition of 10 Per Cent Import Tariff

Minister of Trade Budi Santoso stated that Indonesia has been categorised among the countries facing a 10 per cent import tariff from the United States. However, this tariff is only set to remain in effect for 150 days.

“The US government has established a 10 per cent tariff for all countries for a period of 150 days,” Budi said at the Ministry of Trade office in Jakarta on Monday, 8 June 2026.

Budi explained that the imposition of the 10 per cent tariff occurred after the US Supreme Court overturned the reciprocal tariffs initiated by President Donald Trump. The 10 per cent rate is a result of policies from the Office of the United States Trade Representative (USTR).

He noted that on 11 March 2026, the USTR conducted a Section 301 investigation in accordance with the US Trade Act of 1974. The USTR investigated 60 countries regarding forced labour and manufacturing capacity access. On 2 June 2024, the USTR published the investigation results, which served as the basis for establishing import duties of 10 per cent and 12.5 per cent. “Indonesia is among those assigned or proposed for the 10 per cent tariff,” he said, while 46 other nations were assigned a 12.5 per cent tariff.

Budi stated that the 10 per cent rate was applied because Indonesia possesses legal regulations regarding forced labour, ensuring it does not import goods from countries practising such methods. Additionally, reciprocal trade agreements were a consideration for the 10 per cent rate. However, this tariff is only valid for 150 days, until 24 July 2026, after which the US government will establish new tariffs.

According to Budi, the Indonesian government is still communicating with US authorities regarding the imposition of import tariffs and hopes to secure a 0 per cent burden for certain commodities. “The situation remains dynamic, and the Indonesian government continues to approach the US to secure, of course, better tariff rates,” he remarked.

He added that the United States is Indonesia’s 11th largest export market. He noted that the trade surplus with the US reached US$ 18.11 billion in 2025, with exports amounting to approximately US$ 30.6 billion. “When the reciprocal measures were in place previously, our exports actually increased,” he said.