It's Official! The US Sets 19% Import Tariff for Indonesia

JAKARTA – After a series of negotiation efforts, the United States (US) has finally imposed a new import tariff on goods originating from Indonesia. US President Donald Trump announced that starting this week, products from Indonesia will be subject to a flat tariff rate of 19%, nearly double the previous rate of around 10%.

This announcement is part of a new trade agreement between the US and Indonesia, which Trump claims will help reduce the US trade deficit. The agreement also aims to strengthen the US's bargaining position in global trade.

In his statement, Trump said the agreement is similar to a recently concluded trade deal with Vietnam. In addition to imposing a flat tariff on Indonesian exports to the US, the agreement includes tariff exemptions for US exports to Indonesia. In other words, the US will gain full access to the Indonesian market without paying import duties.

“They will pay 19%, and we won’t pay anything. We’ll have full access to Indonesia, and we have some deals coming up,” said Trump outside the Oval Office, as quoted by Reuters.

The agreement also includes penalty tariffs for transshipment practices involving goods from China via Indonesia, as well as Indonesia’s commitment to purchase US-made products.

On his Truth Social platform, Trump also stated that Indonesia has agreed to purchase US$15 billion worth of US energy products, US$4.5 billion in agricultural products, and 50 Boeing aircraft. However, there is still no certainty on when these purchases will be made.

On the other hand, the Indonesian government, through Susiwijono Moegiarso, Deputy at the Coordinating Ministry for Economic Affairs, stated that both countries are currently preparing a joint statement to outline the details of the agreement, including tariff structures and other commercial arrangements. An official announcement will be made to the public soon.

“We are currently preparing a joint statement between the US and Indonesia that will clarify the reciprocal tariffs for Indonesia, including tariff agreements, non-tariff measures, and commercial arrangements. We will announce it to the public shortly,” said Susiwijono, as quoted by kontan.co.id.

Before this agreement was reached, Trump had threatened to impose a 32% tariff on goods from Indonesia starting August 1. Similar threats were also directed at around 20 other countries, including Canada, Brazil, and Japan, with proposed tariff rates ranging from 20% to 50%.

These tariff threats are a common negotiation tactic used by Trump, applying high pressure early on to push for more favorable deals for the US. In practice, some of the tariff threats issued by Trump have not actually been implemented. (KEN)