Trade Minister: US Import Tariffs for Indonesia Remain Dynamic
Jakarta (ANTARA) - The Minister of Trade, Budi Santoso, has stated that the import tariff rates for Indonesia proposed by the United States Trade Representative (USTR) are still dynamic and have not yet been finalised. He noted that the Indonesian government is continuously communicating and approaching the US government to secure a more favourable tariff scheme for national export products.
“It is still a proposal from America, which remains dynamic, and the Indonesian government continues to approach America to obtain, of course, better tariffs,” Boded said at the Ministry of Trade office in Jakarta on Monday.
Budi explained that the US reciprocal tariff policy was previously overturned by the US Supreme Court. As a replacement, the US government has implemented a general tariff of 10 per cent on all countries for a 150-day period, which ends on 24 July 2026. Following this period, the US government is preparing new policies through investigations based on Section 301 of the US Trade Act of 1974, concerning issues of forced labour and manufacturing capacity.
Furthermore, on 2 June 2026, the USTR published the preliminary results of said investigation, proposing import tariffs of 10 per cent and 12.5 per cent across 60 investigated countries. Out of this number, 14 countries—including Indonesia, Canada, Ecuador, the European Union, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan, and the United Kingdom—have been proposed for a 10 per cent tariff, while 46 other countries face a 12.5 per cent rate.
“Indonesia is included in that group of 14 countries because, regarding forced labour, Indonesia already has a legal framework, and secondly, Indonesia already has an ART (Agreement on Reciprocal Trade),” he explained.
Budi emphasised that the proposed tariff is not an addition to the 10 per cent tariff currently in effect during the 150-day transition period. He noted that the temporary tariff will expire on 24 July 2026 and will subsequently be replaced by new policies that are still under discussion. The government projects that additional tariffs imposed by the US on Indonesian products could reach 18 per cent by the end of the Section 301 Trade Act of 1974 investigation process.
Susiwijono Moegiarso, Secretary to the Coordinating Ministry for Economic Affairs, explained in Jakarta on Saturday (6/6) that Indonesia is currently subject to a temporary tariff of 10 per cent, valid until 24 July 2026. Once this period expires, the tariff structure will be applied gradually. The first component involves a tariff related to forced labour issues at 10 per cent. A few weeks later, the US plans to add a tariff component related to structural excess capacity. Through the mechanism of stacking various tariff components, alongside exclusions for certain products agreed upon by both nations, the final tariff for Indonesia is projected to reach the 18 per cent level.