TEMPO.CO, Jakarta - The government has outlined several measures to address the tariff policy imposed by United States President Donald J. Trump on multiple countries, including Indonesia.
President Prabowo Subianto has directed his cabinet to implement regulatory reforms and eliminate existing barriers.
This was conveyed by Coordinating Minister for the Economy Airlangga Hartarto in an official statement released on Thursday, April 3, 2025.
“President Prabowo has instructed the Red and White Cabinet to take strategic actions and carry out structural reforms, including deregulation efforts such as simplifying and removing regulatory barriers, particularly those related to Non-Tariff Measures (NTMs),” the statement read.
Airlangga added that Prabowo’s directive is part of the government's broader negotiation strategy to respond to the rationale behind Trump's tariff policy.
“This is also aligned with our goals to enhance competitiveness, sustain investor confidence, and attract more investments to preserve the momentum of economic growth,” he said.
A cross-ministry and agency team is said to have coordinated intensively in preparation for facing reciprocal tariffs from the United States. The coordination is carried out along with Indonesia's representatives in the US and national business players.
"The government will continue to communicate with the U.S. government at various levels, including sending a high-level delegation to Washington DC," said Airlangga.
As is known, United States President Donald Trump announced the imposition of reciprocal tariffs, or what he called reciprocal tariffs, on several countries in the world on April 2, 2025. Indonesia is subjected to a 32 percent tariff and will be effective starting April 9, 2025.
A number of import and non-tariff policies implemented by trade partner countries are cited as reasons for the U.S. to apply reciprocal rules. In a report issued by the White House, Indonesia is mentioned to apply a relatively high ethanol tariff.
Additionally, the policy on mandatory placement of natural resource export earnings (DHE SDA) was also cited as a reason for the implementation of reciprocal tariffs.
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