Jakarta (ANTARA) - The Indonesian government has decided to pursue negotiations in response to the United States' (US) 32 percent import tariff imposed on Indonesia, which US President Donald Trump described as "reciprocal."
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that instead of imposing a retaliatory tariff, the Indonesian government chose to use diplomacy as a strategy in seeking mutually-beneficial solutions for the two countries.
"Indonesia is preparing an action plan by taking into account several things, including imports and investment from the US," he said in a limited coordination meeting held online here on Sunday.
The approach has been taken considering the long-term interests in bilateral trade relations and to maintain the investment climate and the national economic stability.
The government is also assessing the potential impact of the tariff policy on several export-oriented, labor-intensive sectors, such as the footwear industry, which are deemed vulnerable to global market fluctuations.
To this end, the government is committed to continuing to provide support through various incentives aimed at maintaining business competitiveness and continuity.
The government will also continue to coordinate with relevant stakeholders, including business associations, to ensure that aspirations from industry players are included in the policymaking process.
In this regard, business player associations are invited to a forum scheduled for Monday, April 7, to discuss and provide input regarding the tariff policy of the US government.
In addition to responding to the tariff, the government is also preparing strategic steps to welcome the opening of the European market, which is a significant market after China and the US.
President Trump on Wednesday announced "reciprocal" tariffs on several countries, including Indonesia, which is slapped with a 32 percent import tariff.
The Trump administration has also imposed a 10 percent baseline tariff on imports from all countries.
