Indonesian Minister Says No Time Limit Sets for U.S. Tariff Talks

3 weeks ago 4

August 22, 2025 | 11:32 am

TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto clarified that tariff negotiations with the United States remain ongoing without a set time limit to reach new deals. The statement came as a U.S.-imposed 19 percent tariff has come into effect for Indonesia since August 7.

But the minister said both countries have resumed talks to achieve mutually beneficial deals. "The U.S. tariff is already in effect, with some exceptions still being processed," Airlangga said at the Auditorium Dhanapala, Ministry of Finance, Jakarta, on Friday, August 22, 2025.

The 19 percent tariff for Indonesia is said to be the second lowest in Southeast Asia after Singapore. Airlangga assured that Indonesia still has a great chance to compete in the U.S. export market, especially compared to India, which is the main competitor in the textile and textile product (TPT) sector.

India is subject to a 25 percent tariff by the U.S.

On the other hand, some Indonesian commodities also received a zero percent tariff, such as copper concentrate and copper cathode. This agreement aligns with the strategic discussions of both countries on the trade of these minerals.

Similarly, Trade Minister Budi Santoso said that the tariff talks between Indonesia and the U.S. remain underway despite the new tariff implementation. "Reciprocal measures kicked off on August 7 while negotiations are ongoing," Budi told reporters at the Ministry of Trade office on Thursday, August 7.

So far, he said, the government is attempting to sway the U.S. to lower tariffs on several Indonesian commodities not produced by the U.S. "We are striving for 0 percent," Budi said, adding that negotiations are expected to conclude in September. 

Alfitria Nefi contributed to the writing of this article.

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