Reduced US Reciprocal Tariff Shows Indonesia's Strategic Position, Says Deputy Investment Minister
JAKARTA - Deputy Minister of Investment and Downstreaming / Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu assessed that the reduction in the reciprocal tariff granted by the United States Government demonstrates that Indonesia holds a strategic position.
US President Donald Trump announced that Indonesian goods entering the US will still be subject to reciprocal tariffs. However, the figure was reduced from the previous 32 per cent to 19 per cent.
Notably, the reciprocal tariffs imposed on Indonesia are considerably lower than those applied to other ASEAN countries, such as Vietnam at 20 per cent, the Philippines at 20 per cent, Malaysia at 25 per cent, Brunei Darussalam at 25 per cent, Thailand at 36 per cent, Cambodia at 36 per cent, Myanmar at 40 per cent, and Laos at 40 per cent.
"If I look at this strategically within Southeast Asia, this is a significant decline. This means that America itself is very much considering Indonesia's importance," said Todotua when met at the St Regis in Jakarta on Wednesday, 16 July.
Regarding Indonesia's investment potential in the US, Todotua said there were no additional investment plans. However, he noted that Indonesia already has investments in the US through state-owned enterprises, such as PT Pertamina (Persero).
On the matter of energy products that Indonesia will import from the US as part of a trade agreement, Todotua explained that discussions were still ongoing. "We are also consolidating on this, because it is new news," said Todotua.
US President Donald Trump previously announced that his administration had reached a trade agreement with Indonesia. Under the agreement, goods from Indonesia will be charged a tariff of 19 per cent, whilst exports from the United States to Indonesia will not be taxed.
"Indonesia will pay the United States a 19 percent Tariff for all of the goods they export to us, while US Exports to Indonesia will be Tariff-Free and Non-Tariff," Trump wrote via the @realDonaldTrump account on the Truth Social platform on Tuesday, 16 July 2025.
Trump described this as a historic agreement reached after speaking directly with President Prabowo Subianto. He claimed that this landmark agreement allows the United States to open full access to the Indonesian market for the first time in history.
Additionally, as part of the deal, Trump said Indonesia has committed to investing in a number of American products. "As part of the agreement, Indonesia has committed to buying 15 billion US Dollars in US Energy, 4.5 Billion US Dollars in American Agricultural Products, and 50 Boeing Jets, many of which are 777," he said.
US President Donald Trump announced that Indonesian goods entering the US will still be subject to reciprocal tariffs. However, the figure was reduced from the previous 32 per cent to 19 per cent.
Notably, the reciprocal tariffs imposed on Indonesia are considerably lower than those applied to other ASEAN countries, such as Vietnam at 20 per cent, the Philippines at 20 per cent, Malaysia at 25 per cent, Brunei Darussalam at 25 per cent, Thailand at 36 per cent, Cambodia at 36 per cent, Myanmar at 40 per cent, and Laos at 40 per cent.
"If I look at this strategically within Southeast Asia, this is a significant decline. This means that America itself is very much considering Indonesia's importance," said Todotua when met at the St Regis in Jakarta on Wednesday, 16 July.
Regarding Indonesia's investment potential in the US, Todotua said there were no additional investment plans. However, he noted that Indonesia already has investments in the US through state-owned enterprises, such as PT Pertamina (Persero).
On the matter of energy products that Indonesia will import from the US as part of a trade agreement, Todotua explained that discussions were still ongoing. "We are also consolidating on this, because it is new news," said Todotua.
US President Donald Trump previously announced that his administration had reached a trade agreement with Indonesia. Under the agreement, goods from Indonesia will be charged a tariff of 19 per cent, whilst exports from the United States to Indonesia will not be taxed.
"Indonesia will pay the United States a 19 percent Tariff for all of the goods they export to us, while US Exports to Indonesia will be Tariff-Free and Non-Tariff," Trump wrote via the @realDonaldTrump account on the Truth Social platform on Tuesday, 16 July 2025.
Trump described this as a historic agreement reached after speaking directly with President Prabowo Subianto. He claimed that this landmark agreement allows the United States to open full access to the Indonesian market for the first time in history.
Additionally, as part of the deal, Trump said Indonesia has committed to investing in a number of American products. "As part of the agreement, Indonesia has committed to buying 15 billion US Dollars in US Energy, 4.5 Billion US Dollars in American Agricultural Products, and 50 Boeing Jets, many of which are 777," he said.