Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan is set to meet U.S. Secretary of Commerce Howard Lutnick in September 2025 to advance ongoing sectoral tariff negotiations between Indonesia and the United States. 

Luhut confirmed on Wednesday, August 13, that he has requested permission from President Prabowo Subianto for the meeting, citing his personal ties with Lutnick. “I have already asked for time and permission from the President to meet with Secretary (Howard) Lutnick because he is also a good friend,” Luhut said at his Jakarta office. 

The agenda will focus on Indonesia’s key commodities that are not produced in the United States. Luhut aims to secure the removal of the current 19% import tariff on these goods, with the goal of reducing it to 0%. He said Indonesia now holds a strong bargaining position with Washington, noting that the country had previously managed to soften the stance of U.S. President Donald Trump and his administration, achieving a relatively low reciprocal tariff compared to other ASEAN nations. 

“With a (reciprocal) tariff of 19%, that’s only 1% higher than Vietnam,” he stated. 

Negotiations Still Underway 

Minister of Trade Budi Santoso confirmed that talks with the United States are continuing despite the 19% tariff taking effect on August 7, 2025. He said further reductions are still possible, following earlier negotiations that lowered the tariff from 32% to 19%. 

According to Budi, Indonesia has been granted an opportunity to continue discussions with the Trump administration and will use it to push for a 0% import tariff on certain commodities. He declined to name the commodities under negotiation. 

Budi outlined the previous negotiation process, explaining that the initial 32% tariff was postponed for three months, during which it was reduced to 10%. This period of talks ultimately resulted in the current 19% rate. “Now we have 19%, but we are still negotiating, aiming for 0% by September 1,” he said. 

The reciprocal tariff of 19% between Indonesia and the United States has been in effect since August 7, 2025, as part of a wider policy announced by the U.S. that applies to 92 other countries. 

This article is published in partnership with Katadata 

Original article here