PALMOILMAGAZINE, JAKARTA – On April 2, 2025, the United States officially imposed a reciprocal tariff on Indonesia, amounting to 32 percent, based on a general tariff baseline of 10 percent applied by the U.S. to all countries and its current tariff structure. The reciprocal tariff will come into effect on April 9, 2025. This policy is expected to have a significant impact on the competitiveness of Indonesian exports to the U.S.
Indonesia’s main exports to the U.S. include electronics, textiles and textile products, footwear, palm oil, rubber, furniture, shrimp, and marine products.
The Indonesian government will immediately assess the impact of this tariff on these sectors and on the national economy as a whole. It will also take strategic steps to mitigate any negative consequences for Indonesia’s economic stability.
The government remains committed to maintaining the stability of Government Securities (SBN) yields amidst global financial market volatility following the U.S. tariff announcement. In coordination with Bank Indonesia, efforts are ongoing to stabilize the Rupiah exchange rate and ensure adequate foreign exchange liquidity to support business activities and overall economic stability.
Since early this year, the Indonesian government has prepared various strategies to face the U.S. reciprocal tariff policy, including ongoing negotiations with the U.S. government. A cross-ministerial task force, Indonesian representatives in the U.S., and national business stakeholders have been coordinating closely to prepare for this challenge.
The Indonesian government will continue engaging in dialogue with the U.S. at multiple levels, including by sending high-level delegations to Washington D.C. for direct negotiations.
As part of the negotiation process, Indonesia has prepared various responses to the concerns raised by the U.S., especially those highlighted in the 2025 National Trade Estimate (NTE) report published by the U.S. Trade Representative.
President Prabowo Subianto has instructed the Red-and-White Cabinet to take strategic measures and implement structural reforms, including deregulation — simplifying or eliminating regulations that hinder trade, particularly Non-Tariff Measures (NTMs). These steps are in line with the government’s efforts to improve competitiveness, maintain market confidence, attract investment, and sustain economic growth.
Additional strategic policies will also be adopted to improve the investment climate, stimulate economic growth, and support broad-based job creation.
Indonesia has communicated with Malaysia, which currently holds the ASEAN Chairmanship, to pursue a joint response — considering that all 10 ASEAN countries are affected by the U.S. tariff measures. (*)
