Indonesian Political, Business & Finance News

Indonesia Faces New 10% Trump Tariffs, Says Trade Minister

| Source: CNBC Translated from Indonesian | Trade
Indonesia Faces New 10% Trump Tariffs, Says Trade Minister
Image: CNBC

The United States government is currently preparing a new tariff policy intended to replace the temporary 10% tariff currently applied to all nations. As previously reported, the US Supreme Court has overturned the high tariff policies established by President Donald Trump, replacing them with a 10% tariff applicable to all countries.

Under this new tariff structure, Indonesia is among the nations included in the preliminary results of a trade investigation conducted by the US government. This policy follows an investigation by the Office of the United States Trade Representative (USTR) under Section 301, concerning issues of forced labour and manufacturing overcapacity in several partner countries.

“The 10% tariff determined by the US Government is replacing the reciprocal arrangement that ends on 24 July 2026,” stated Minister of Trade Budi Santoso at his office on Monday (8/6/2026).

The preliminary investigation results announced by the USTR on 2 June 2026 proposed new tariffs on dozens of countries. Out of the 60 countries investigated, 14 countries have been assigned a 10% tariff, while 46 other countries have been assigned a 12.5% tariff.

“The USTR has published the preliminary results of the investigation regarding forced labour, proposing import duties or tariffs of 10% and 12.5%. Indonesia is included in the group proposed for the 10% tariff,” he said.

The Indonesian government considers this position to be better than that of most other countries included in the investigation. One key consideration is the existence of national laws deemed to have prevented forced labour practices.

“Indonesia already possesses a legal framework and, secondly, Indonesia already has the ART [regulations]. Therefore, this is still a US proposal which remains dynamic,” said Budi.

Currently, the government continues to maintain communication with the US government to ensure that Indonesian exports remain protected. Various negotiation options are also being discussed ahead of the expiration of the temporary tariff policy this coming July.

“The Indonesian government continues to approach the United States to ultimately secure a better tariff rate,” said Budi Santoso.

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