U.S. tariff cut shows Indonesia's strategic position: deputy minister

Jakarta (ANTARA) - Deputy Minister for Investment and Downstream Todotua Pasaribu stated that the Republic of Indonesia holds a strategic position, as reflected by a significant reduction in reciprocal U.S. tariffs on Indonesian products.

“In my view, strategically, among Southeast Asian countries, our tariff rates experienced one of the largest reductions. This indicates that the United States highly values Indonesia's presence,” Pasaribu told reporters in Jakarta on Wednesday.

His remarks followed the announcement by U.S. President Donald Trump that a 19 percent import tariff would be applied to Indonesian goods entering the U.S. following direct negotiations with Indonesian President Prabowo Subianto—a sharp drop from the previous 32 percent rate.

As part of the agreement, Indonesia is expected to buy energy commodities from the United States. However, Pasaribu noted that this aspect of the agreement is still under discussion.

“We are still consolidating, as the news just came out,” he stated.

Pasaribu also noted that Indonesia currently has no plans to increase its investments in the United States.

On Tuesday (July 15), President Trump announced what he described as a “great deal” reached with Indonesia, following direct talks with Indonesian President Prabowo Subianto

According to Trump, Indonesia agreed to purchase US$15 billion worth of American energy products, US$4.5 billion in U.S. agricultural products, and 50 Boeing jets.

The revised reciprocal tariff rates now place Indonesia as the second-lowest in ASEAN, just behind Singapore, which faces a 10 percent U.S. tariff.

Indonesia’s reciprocal tariff rate is now lower than Vietnam's and the Philippines' 20 percent, Malaysia's and Brunei's 25 percent, Thailand's and Cambodia's 36 percent, and Myanmar's and Laos' 40 percent.