The Indonesian government projects a 5% economic growth rate by the end of 2025, largely driven by a significant reduction in U.S. import tariffs—from 32% to 19%—as a result of successful negotiations. According to the Ministry of Finance, this breakthrough is expected to make Indonesia’s exports more resilient and competitive during the second half of the year. The deal reflects Indonesia’s strengthened position in international trade and comes alongside the finalization of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which had been in negotiations for nearly a decade.
Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the new tariff is binding and a result of direct negotiations between President Prabowo Subianto and U.S. President Donald Trump. With lower tariffs than ASEAN peers and key textile-producing countries like Bangladesh, India, and Sri Lanka, Indonesia holds a strong competitive edge. Concerns over rising U.S. imports were addressed by ensuring food self-sufficiency while redirecting import sources for commodities like wheat and soybeans.

Source: https://www.antaranews.com/berita/4982117/pemerintah-optimistis-ekonomi-tumbuh-5-persen-berkat-tarif-19-persen