ASIATODAY.ID, JAKARTA – United States President Donald Trump has officially imposed a 19% import tariff on Indonesian export products, significantly lower than the previous rate of 32%. This reduction marks a major diplomatic achievement for Indonesia, following a series of intensive negotiations to secure continued access to the US export market.
The new tariff rate is not only a considerable drop from previous levels but also the lowest among ASEAN and South Asian countries. For comparison, Bangladesh faces a 35% tariff, Thailand 36%, Sri Lanka 30%, Malaysia and Brunei 25%, and both Vietnam and the Philippines at 20%.
This milestone comes after a high-level agreement between Indonesian President Prabowo Subianto and US President Donald Trump. The agreement was reached swiftly following a formal letter from President Trump on July 7, 2025. Within just two days, Indonesia dispatched a negotiation team to Washington, D.C., finalizing the deal during bilateral discussions on July 9, 2025.
“I spoke directly with President Donald Trump. The talks were tough, but thankfully we reached an agreement. The tariff was reduced from 32% to 19%, reflecting a mutual understanding of our respective interests,” Prabowo stated during a press briefing upon returning to Indonesia on Wednesday, July 16.
President Prabowo emphasized that every decision was carefully considered, with a strong focus on protecting Indonesian workers and advancing national interests in all economic negotiations.
“What matters most to me is my people. I must protect our workers. Everything has been carefully negotiated and calculated,” he added.
Indonesia’s Strategic Economic Diplomacy in Action
Since April 2025, the Indonesian government has actively pursued this outcome through diplomatic engagement, beginning with a visit to the United States by Coordinating Minister for Economic Affairs Airlangga Hartarto and his negotiation team.
Looking ahead, Indonesia remains committed to deepening its strategic economic partnership with the United States, while continuing to engage in constructive and adaptive economic diplomacy with global partners.
These efforts are key pillars in strengthening Indonesia’s position in global value chains and ensuring open market access. (AT Network)
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