Indonesian Political, Business & Finance News

State Secretary: Opportunity for Lower US Tariff Deal Remains Open

| Source: ANTARA_ID | Trade
Jakarta (ANTARA) - State Secretary (Mensesneg) Prasetyo Hadi has said that there has been no official change to the agreed tariff rate with the United States to date.

He stated there is no fixed target figure for reducing reciprocal tariffs with the United States. According to Prasetyo, the opportunity remains open, particularly through communication between Indonesian President Prabowo Subianto and US President Donald Trump.

"We are simply looking at other countries. If some can get a reduction to 18 per cent, then perhaps we would like to come down to 18 as well. But it is not for us to determine — it is part of the ongoing negotiation effort," Prasetyo said in Jakarta on Wednesday.

The State Secretary conveyed that to date there has been no change to the tariff rate set for Indonesia, which stands at 19 per cent.

Regarding the possibility of Indonesia presenting a new offer to push the tariff lower, he noted that the points raised thus far have essentially already formed part of the initial discussions.

Nevertheless, dynamics could still develop through direct communication between the two leaders.

"If we want a further reduction, we leave it to these two leaders — perhaps in the course of their communication. It cannot be ruled out, because the good relationship between these two leaders may lead to a policy change; we do not know," he added.

As is known, President Prabowo Subianto is on a working visit to the United States to attend three engagements.

The first agenda item was a meeting with a group of American business leaders on Wednesday (18 February), followed by the inaugural summit of the Gaza Board of Peace (BoP) on Thursday (19 February).

Subsequently, President Prabowo will hold a bilateral meeting with US President Donald Trump, during which the two leaders are expected to sign an Agreement on Reciprocal Trade (ART), negotiations for which have been under way since 2025.

Under this agreement, Indonesia commits to opening market access for American products, addressing various non-tariff barriers, and strengthening cooperation in digital trade and technology, national security, and other commercial areas.

The United States commits to granting tariff exemptions for a number of Indonesia's flagship export products not manufactured in the US, including palm oil, cocoa, coffee, tea, and other strategic commodities.
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