Indonesia's Trade Balance Won't Narrow Due to US Tariffs – Trade Minister

which is now also approaching 0 per cent. Secondly, the goods we import are goods that we actually need.

Jakarta (ANTARA) – Minister of Trade, Budi Santoso, refuted the notion that Indonesia’s trade balance would shrink as a result of the reciprocal tariff agreement with the United States.

He dismissed concerns from some parties who believe that Indonesia’s trade balance could be affected by US tariff policies. According to him, the tariff for a number of Indonesian products to the US is currently also approaching 0 per cent.

“No, it’s not. Because the tariffs from the US are already approaching 0 per cent. Secondly, the goods we import are goods that we actually need,” said Budi in Jakarta on Tuesday.

Budi stated that Indonesia’s current trade position with the United States still records a surplus.

According to Budi, the tariff agreement actually allows Indonesia to obtain a number of tariff facilities of 0 per cent for various commodities. This condition is considered to further encourage the competitiveness of national products in the global market.

“Our largest surplus is with the United States, and the second largest is with India. So there is no problem. Secondly, from the agreement, we get a lot of 0 per cent tariffs. It should actually increase. Indeed, our hope is to increase exports,” he said.

Indonesian commodities that receive 0 per cent tariffs to the US market include palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components.

In addition, Indonesia and the US also agreed on a 0 per cent tariff scheme for textile and garment products through the Tariff Rate Quota (TRQ) mechanism.

This scheme allows a certain volume of Indonesian textile and garment exports to enter the US market without import duties.

However, the size of the quota will be determined based on the amount of textile raw materials that Indonesia imports from the US, such as cotton and synthetic fibres.

In January-December 2025, the United States contributed a surplus of US$21.12 billion. The largest surplus-contributing commodities were machinery and electrical equipment and its parts, clothing and accessories (knitted), and footwear.

The value of Indonesia’s exports to the United States was recorded at US$30.96 billion, with the main drivers being machinery/mechanical equipment and so on, vehicles and their parts, and iron and steel.

Meanwhile, the value of Indonesia’s imports from the United States was recorded at US$9.84 billion, with the main commodities being machinery/mechanical equipment and its parts, oil-containing seeds and fruits, and machinery/electrical equipment and its parts.