Indonesia business group backs US talks over tariffs
Flag of Indonesia. (Photo: iStock)
JAKARTA: Indonesia's main business lobby has backed Jakarta to negotiate better terms with Washington after US President Donald Trump imposed hefty tariffs on goods from Southeast Asia's biggest economy.
Trump announced sweeping, harsher-than-expected global levies this week, punishing allies like security partner Indonesia for running a trade surplus with the economic superpower.
The escalation saw the archipelago nation hit with an additional 32 per cent levy on its goods, higher than the baseline 10 per cent for all countries and more than Southeast Asian neighbours Malaysia, Singapore and the Philippines.
Jakarta's foreign ministry said it would send a high-ranking delegation to Washington to negotiate a better deal.
Chief economic affairs minister Airlangga Hartarto called for the 10-member Association of Southeast Asian Nations (ASEAN) to coordinate its response to the tariffs.
"Synchronisation between ASEAN countries is needed, because of the 10 ASEAN countries, all are affected by the US reciprocal tariff policy, so it is necessary to collectively build communication and engagement with the US Government," he said in a statement on Friday (Apr 4).
The tariffs were just "an opening statement", said Indonesian Chamber of Commerce and Industry (Kadin) chair Anindya Novyan Bakrie in a statement late Thursday.
"This means the door for negotiation is still open. Intensive communication with the US government ... is the right move."
Indonesian furniture exports, of which 53 per cent ship to the United States, would be badly impacted, local media reported citing Abdul Sobur, head of the Furniture and Craft Association.
"This is significant and can certainly reduce the competitiveness of Indonesian furniture products in the US market," he said.
The foreign ministry said the tariffs would have a "significant impact" on its exports to the United States, including electronics, textiles, footwear and palm oil.
It said it was taking "strategic steps" to mitigate the fallout from the new tariffs.
The United States is one of Indonesia's top trading partners, and Jakarta enjoyed a US$16.8 billion trade surplus with Washington in 2024, according to Indonesian government data.
Washington appears to have particularly taken aim at countries that the United States has a large trade deficit with.
Data from the US trade representative office shows Washington's goods trade deficit with Jakarta was US$17.9 billion in 2024, up 5.4 per cent increase on the year prior.
Indonesia's Southeast Asian neighbours Cambodia, Laos and Vietnam were some of the worst-hit nations, with tariffs of more than 40 per cent imposed.
