Coordinating Minister for Economic Affairs Airlangga Hartarto met with U.S. Ambassador to Indonesia, H.E. Kamala S. Lakhdhir, on April 8 to discuss the U.S. government’s decision to impose a 32% reciprocal tariff on Indonesian products, effective April 9, 2025. The meeting focused on strategies to strengthen trade and investment ties while addressing the tariff issue through constructive dialogue. Minister Airlangga emphasized Indonesia’s commitment to pursuing negotiations rather than retaliation, aligning with ASEAN’s approach. He proposed revitalizing the Indonesia-U.S. Trade and Investment Framework Agreement (TIFA), in place since 1996, as a negotiation platform.
To support the process, Indonesia is preparing several strategic measures, including easing non-tariff regulations, relaxing local content requirements (TKDN) for U.S. tech companies like GE, Apple, Oracle, and Microsoft, reviewing import restrictions (Lartas), and accelerating halal certification. The two sides also discussed balancing the trade of goods, with Indonesia offering fiscal and non-fiscal incentives to encourage U.S. imports while maintaining the competitiveness of its own exports. Ambassador Kamala expressed strong support for Indonesia’s efforts and affirmed the U.S. Embassy’s readiness to facilitate communication and set up meetings with key U.S. stakeholders. She noted ongoing coordination with the U.S. Secretary of Commerce and USTR regarding Indonesia’s negotiation plans. Minister Airlangga concluded by underlining the strategic importance of the U.S. as a trade partner and expressed confidence that through dialogue and collaboration, both countries can achieve a fair and mutually beneficial trade relationship.
