US Reciprocal Tariff Reduction 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 said the reciprocal tariff reduction granted by the United States demonstrates Indonesia's strategic position.
US President Donald Trump announced that Indonesian goods entering the US would remain subject to a 19 per cent import tariff, down from the previous 32 per cent.
"If I look at it strategically within the Southeast Asian region, this is the most significant reduction. It means America itself greatly considers Indonesia's importance," said Todotua when met at the St Regis in Jakarta on Wednesday (16/7/2025).
Indonesia's reciprocal tariff is notably lower than those imposed on other ASEAN nations, including 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.
Regarding the potential for Indonesian investment in the US, Todotua stated there were no additional investment plans at this stage. He noted that Indonesia already has investments in the US through state-owned enterprises, such as PT Pertamina (Persero).
Furthermore, on the question of energy products that Indonesia is set to import from the US as part of a trade agreement, Todotua — who also serves as Deputy President Commissioner of Pertamina — said the matter was still under discussion.
"We are also consolidating on this, as it is still fresh news," he said.
Previously, Trump announced the contents of a new trade agreement between the US and Indonesia, including commitments by Indonesia to purchase various strategic commodities from the US. Trump also confirmed that Indonesia would be subject to a 19 per cent import tariff.
US President Donald Trump announced that Indonesian goods entering the US would remain subject to a 19 per cent import tariff, down from the previous 32 per cent.
"If I look at it strategically within the Southeast Asian region, this is the most significant reduction. It means America itself greatly considers Indonesia's importance," said Todotua when met at the St Regis in Jakarta on Wednesday (16/7/2025).
Indonesia's reciprocal tariff is notably lower than those imposed on other ASEAN nations, including 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.
Regarding the potential for Indonesian investment in the US, Todotua stated there were no additional investment plans at this stage. He noted that Indonesia already has investments in the US through state-owned enterprises, such as PT Pertamina (Persero).
Furthermore, on the question of energy products that Indonesia is set to import from the US as part of a trade agreement, Todotua — who also serves as Deputy President Commissioner of Pertamina — said the matter was still under discussion.
"We are also consolidating on this, as it is still fresh news," he said.
Previously, Trump announced the contents of a new trade agreement between the US and Indonesia, including commitments by Indonesia to purchase various strategic commodities from the US. Trump also confirmed that Indonesia would be subject to a 19 per cent import tariff.