Starting Today, Indonesia Faces 19% Tariff - But US Products Stay at 0%? What's Behind It?

Bisnis | Ekonomi - Posted on 07 August 2025 Reading time 5 minutes

The government confirmed that import tariffs on several Indonesian products exported to the United States officially take effect today, Thursday, August 7, 2025.

 

Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the implementation of these tariffs had already been communicated to stakeholders, including the Chamber of Commerce and Industry (Kadin) and domestic exporters.

 

"Just like when the 10% tariff was imposed previously, we immediately held a briefing. This time, we’ve done the same with Kadin and the exporters," Airlangga said to reporters at the Presidential Palace complex on Wednesday evening.

 

The 19% tariff is the result of negotiations that lowered it from the initially announced rate of 32%. However, in return, the US requested that certain American products entering Indonesia be exempt from import duties.

 

Airlangga added that the proposal to waive tariffs on US goods is still under discussion, as is Indonesia’s request to exempt some of its own key exports—such as cocoa and crude palm oil (CPO)—from the 19% tariff.

 

He emphasized that the decision to enforce the tariff is now final, and there will be no further joint statements between the two countries.

 

The complicated tariff negotiations began after President Donald Trump announced a reciprocal tariff policy on April 2, 2025, affecting exports from 180 countries, including Indonesia, which was initially hit with a 32% tariff.

 

In response, President Prabowo Subianto declared that Indonesia would formally pursue bilateral negotiations to address the issue.

 

On April 9, 2025, President Trump postponed the implementation of the tariffs for 90 days, extending the deadline to July 9, 2025.

 

On July 7, 2025, several companies from Indonesia and the US signed trade agreements as part of Indonesia’s commitment to balance bilateral trade.

 

Nonetheless, Trump sent a letter on August 1, 2025, reaffirming the imposition of the 32% tariff on Indonesia. Following this, Indonesia’s negotiation team returned to Washington, D.C. on July 9, 2025.

 

Then, on July 22, 2025, the US government issued a Joint Statement outlining a Framework for Reciprocal Trade Cooperation between the US and Indonesia, which ultimately led to reducing the tariff to 19%.

 

As part of that agreement, the US asked Indonesia to consider granting zero-tariff access to all American export products, and to waive local content requirements (TKDN) for US goods.

Source: bloombergtechnoz.com

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