US Government Shutdown! But Trade Tariff Talks with Indonesia Still Continue

Bisnis | Ekonomi - Posted on 06 October 2025 Reading time 5 minutes

The governments of Indonesia and the United States (US) continue negotiations and legal drafting concerning the implementation of import tariffs, despite the ongoing government shutdown in Washington.

 

For context, the US officially entered a shutdown on Wednesday (October 1, 2025) following a deadlock in negotiations between the Republican-led administration and the Democratic-controlled Congress.

 

Nevertheless, bilateral discussions between both nations are still ongoing. Indonesia continues to hold intercession meetings online with the United States Trade Representative (USTR). The sessions are coordinated by the Deputy for International Economic Cooperation under the Coordinating Ministry for Economic Affairs (CMEA).

 

“Currently, the online intercession meeting with the USTR is still taking place, coordinated by Mr. Edi Pambudi (Deputy II),” said Coordinating Ministry Secretary (Sesmenko) for Economic Affairs, Susiwijono Moegiarso, to Bisnis on Monday (October 6, 2025).

 

Susi, as he is commonly known, declined to elaborate further on the details of the meeting but confirmed that Indonesia and the US have several more bilateral sessions scheduled.

 

“There are still several rounds of intercession meetings planned—if I recall correctly, six sessions are set to take place throughout October,” added Susiwijono, who previously served as a director within the Directorate General of Customs and Excise at the Ministry of Finance.


 

Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto mentioned that the US government shutdown could potentially delay the negotiation process. The suspension came as Indonesia’s negotiating team was finalizing legal documents and tariff discussions.

 

Through recent talks, Indonesia succeeded in negotiating a tariff reduction—from the initial 32% to 19%. However, the new tariff—19% for Indonesian goods entering the US and 0% for US goods entering Indonesia—has yet to take effect.

 

When met at the CMEA office on Tuesday (September 30, 2025), Airlangga explained that Indonesia is still completing the legal drafting phase and negotiating the inclusion of several products that could be exempted from the 19% tariff.

 

“The tariff from the US side is still under negotiation, so it hasn’t been implemented yet. Based on data from Statistics Indonesia (BPS), our exports remain strong,” he said.

 

Up to October 2025, the Indonesian government—through various ministries and agencies—will continue to conduct bilateral online meetings with the USTR. Several legal documents are still being finalized, including the Agreement on Reciprocal Trade and the Country Specific Commitment between the two nations.

 

Therefore, Airlangga emphasized that the 19% tariff for Indonesian exports to the US and the 0% rate for imports from the US are not yet effective. Both sides aim to finalize the legal drafting by next month.

 

“We’ll wait until it’s finalized. Preparations are ongoing, and hopefully, everything can be completed this October,” said the minister, who has held his position since 2019.

 

Simultaneously, the government is ensuring that the final legal drafting will exclude several key Indonesian commodities—such as palm oil, rubber, and cocoa—from the 19% import duty.

 

“All commodities originating from Indonesia, including palm oil, rubber, and cocoa, are very likely to receive a zero-tariff rate,” concluded Airlangga.

Source: bisnis.com

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