Enviro News Asia, Jakarta — The Indonesian government has decided to pursue negotiation efforts in response to the United States’ reciprocal tariff policy.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that Indonesia will not impose retaliatory tariffs. Instead, the Indonesian government has chosen a diplomatic approach in seeking mutually beneficial solutions for both nations.
He also emphasized the importance of maintaining investment climate stability and protecting the domestic industrial sectors affected by the policy.
“Indonesia is preparing an action plan by taking into account several factors, including imports and investments from the United States,” said Minister Airlangga while chairing the Follow-up Limited Coordination Meeting on the Reciprocal Tariff Policy, Sunday (April 6, 2025).
The government’s current steps are focused on formulating a holistic action plan. This process involves coordination between ministries, government institutions, and national business players.
The government has also initiated active communication with international counterparts such as the United States Trade Representative (USTR), the U.S. Chamber of Commerce, and other partner countries to find common ground amid the tariff tensions.
This diplomatic effort not only prioritizes formal negotiations but also takes into account fiscal considerations and the impact on domestic industrial sectors.
Airlangga explained that the President of Indonesia has instructed the government to send an official letter of response by April 9, 2025, and that technical discussions will continue through cross-sectoral working group forums.
The government highlighted the importance of protecting labor-intensive sectors, especially industries that heavily depend on exports such as textiles, footwear, and other manufactured goods.
To that end, various incentives will be provided to ensure business continuity and maintain the competitiveness of domestic industries.
As part of efforts to ensure transparency and collaboration, the government will hold a meeting with business associations on Monday (April 7, 2025). The agenda includes gathering input, disseminating information regarding the US tariff policy, and exploring expansion into alternative markets, particularly in Europe.
Airlangga underlined the importance of the European market as part of the national export diversification strategy.
“We need to push this so we have larger alternative markets,” he said.
Europe is considered a strategic region after China and the United States, and has now become a primary target for export expansion amid the current pressure.
The retaliatory tariffs from the US are officially set to take effect on April 9, 2025. Certain commodities, such as medical supplies and humanitarian aid, are exempted from the policy.
