A selected team of high-ranking Indonesian government officials are in Washington, D.C. from April 16-23 to negotiate a reduction of the 32% reciprocal tariffs recently imposed by the United States on Indonesian imports.  

Leading the delegation is Coordinating Minister of Economic Affairs Airlangga Hartarto, accompanied by Finance Minister Sri Mulyani Indrawati, Foreign Minister Sugiono, National Economic Council Deputy Mari Elka Pangestu, and First Deputy Finance Minister Thomas Djiwandono. During their visit, the officials are scheduled to hold meetings with counterparts from the US Trade Representative (USTR), Department of Commerce, State Department, and Treasury Department. 

Airlangga confirmed the Indonesian government has prepared a “non-paper”—an informal document to support the talks—and aims to secure “specific and pragmatic outcomes.” The delegation is also open to negotiating a limited free trade agreement (FTA) or revisiting the Trade and Investment Framework Agreement (TIFA) previously held with the US. 

The negotiation is in response to the US administration’s new tariff policy announced by President Donald Trump on April 2, 2025. The policy imposes a general 10% tariff on all imports, with an elevated 32% rate for Indonesian goods starting April 9.  

Compared to other ASEAN countries, Indonesia faces one of the highest reciprocal tariffs; for example, the US has set rates of 17% for the Philippines, 10% for Singapore, 24% for Malaysia, only trailing behind Thailand, Vietnam and Cambodia with 36%, 46%, and 49% respectively. However, Indonesia is among the countries granted a 90-day implementation delay, which expires in early July.  

To address the trade imbalance, President Prabowo Subianto has announced plans to purchase up to $18 billion worth of US goods—matching the 2024 trade deficit—including items such as wheat, soybeans, cotton, LPG, and drilling equipment.  

Complementing this, the government is considering tariff reductions, relaxed local content rules, and the removal of certain import quotas. Indonesia also aims to encourage state-owned enterprises in the oil, gas, and technology sectors to explore investment opportunities in the US. 

The Indonesian delegation is also engaging with US business associations such as the US-ASEAN Business Council and the US-Indonesia Society (USINDO). Foreign Minister Sugiono had earlier met with US Secretary of State Marco Rubio, and further follow-ups are planned during the visit. 

“These meetings don’t happen just once. Usually, there are two to three rounds, because the first involves reaching an agreement, and the second is for drafting,” Airlangga said as reported by Antara News.  

The outcome of these discussions will be crucial in shaping Indonesia’s trade trajectory and managing economic impacts such as current account deficits and potential inflation from increased US imports.