Indonesia Still Lobbying the U.S., Import Tariff Decision Expected Before August 1

JAKARTA. The Indonesian government is making continued efforts to reduce the 32% import tariff that the United States plans to impose on products originating from Indonesia. Although the deadline for the tariff implementation is just weeks away — on August 1, 2025 — negotiations remain active and intensive.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Indonesian government had met directly with U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer in Washington, D.C., to advance trade discussions.

During the meeting, the U.S. side confirmed that Indonesia’s negotiation proposal is still under further review.

“Yesterday, in our meeting in the U.S. with Secretary Lutnick and Ambassador Greer from the USTR, it was agreed that Indonesia’s proposal is moving forward in the process. So over the next three weeks, we hope to finalize the fine-tuning of the proposal and the items that have already been exchanged,” said Airlangga during President Prabowo’s visit to Brussels, Belgium, as quoted from the Presidential Secretariat’s YouTube channel on Sunday, July 13, 2025.

However, Airlangga did not disclose the contents of the proposal, only emphasizing that the negotiation process remains open and is moving in a positive direction.

Previously, U.S. President Donald Trump publicly announced that Indonesia would be subject to a 32% import tariff starting August 1, 2025. The announcement was made in an open letter addressed to President Prabowo, published via Trump’s Truth Social account.

In response, Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, said that the 32% figure is not yet final. He stated that there is still room for negotiation before the tariffs officially take effect.

“Our target is to secure the lowest possible tariff, even lower than other ASEAN countries,” he said during a press briefing in Jakarta on Wednesday, July 9, 2025, as quoted by bisnis.com.

For reference, U.S. import tariffs on other countries vary: Thailand and Cambodia are each subject to 36%, Bangladesh 35%, Myanmar and Laos 40%, while Malaysia, South Korea, and Japan face a 25% tariff. (KEN)