Prabowo: Indonesia's Interests Take Priority in US Reciprocal Tariff Policy

JAKARTA, KOMPAS.com – President Prabowo Subianto has affirmed that Indonesia’s national interests are the top priority in responding to the reciprocal tariff policy with the United States.

In his statement, Prabowo stressed that every trade agreement must remain aligned with Indonesia’s interests.

He even opened the possibility of abandoning the agreement if it is deemed detrimental.

He added that the government will not hesitate to take firm steps if any agreement conflicts with national interests.

“If I assess that our national interests are threatened by any agreement, then we can leave it,” he continued.

Regarding the mechanism for resolving differences in bilateral cooperation, Prabowo mentioned that both countries have agreed to establish a special forum.

He also revealed that the agreement covers thousands of Indonesian commodities receiving special tariff treatment.

“In our agreement, there are 1,819 of our commodities at zero,” Prabowo continued.

For information, reciprocal tariffs are a reciprocal trade policy in which two countries impose import tariffs of equivalent magnitude on each other.

The agreement also includes zero per cent tariff exemptions for a number of Indonesia’s flagship products such as palm oil, coffee, chocolate, and textiles.

In return, Indonesia provides tariff exemptions for more than 99 per cent of products originating from the US.