ASIATODAY.ID, JAKARTA – The Government of Indonesia has reaffirmed its commitment to prioritize diplomacy and constructive dialogue in response to the 32% reciprocal tariff imposed by the United States on Indonesian products.
This stance was conveyed by Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, during a meeting with the US Ambassador to Indonesia, H.E. Kamala S. Lakhdhir, in Jakarta on Tuesday, April 8, 2025.
Indonesia’s Diplomatic Strategy: Revitalizing Trade Agreements and Policy Reforms
Minister Airlangga emphasized that Indonesia will not resort to retaliatory measures. Instead, the government will leverage negotiations and diplomacy to maintain a balanced trade relationship between the two countries.
“Indonesia will prioritize negotiations and constructive dialogue, particularly through the revitalization of the Indonesia-US Trade and Investment Framework Agreement (TIFA), which has been in place since 1996,” said Minister Airlangga.
Several strategic steps prepared by the Indonesian Government to support the negotiation process include:
– Deregulation of Non-Tariff Measures (NTMs) to facilitate US investment in Indonesia, especially in the ICT sector.
– Reviewing import restrictions and licensing policies (Lartas).
– Accelerating halal certification for strategic products.
Indonesia Offers Incentives to Support Trade Balance
To ensure a fair and balanced trade relationship, the Indonesian Government is also preparing fiscal and non-fiscal incentives to support the import of US products into Indonesia, while maintaining the competitiveness of Indonesian exports to the US and protecting national interests.
US Ambassador Kamala S. Lakhdhir welcomed Indonesia’s diplomatic efforts and its focus on dialogue. She expressed the US Embassy’s readiness to facilitate communication and negotiations between Indonesia and relevant US trade authorities.
“We are ready to assist Indonesia’s negotiation process with the United States Trade Representative (USTR) and other strategic stakeholders,” said Ambassador Kamala. (AT Network)
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