TEMPO.CO, Jakarta –Trade Minister Budi Santoso announced that the United States’ reciprocal tariff on Indonesian goods, set at 19 percent, officially took effect today, Thursday, August 7, 2025.
“The reciprocal tariff is effective from August 7, but negotiations are still ongoing,” Budi said at the Ministry of Trade office.
He added that the Indonesian government continues to push the US to lower tariffs on several Indonesian commodities that are not produced domestically in the US. “The target is 0 percent,” he stated, noting that the government aims to conclude negotiations before September 1, 2025.
Coordinating Minister for Economic Affairs Airlangga Hartarto also commented on the development, pointing out that the 19 percent tariff imposed on Indonesia is among the lowest in Southeast Asia, apart from Singapore, which enjoys a 10 percent rate.
“Almost all ASEAN countries are nearing the end of their negotiations, and except for Singapore, the minimum tariff for ASEAN countries is 19 percent,” he said.
Despite the tariff, Airlangga believes Indonesia still has strong potential to compete in the US export market. This is especially true when compared to India, its main rival in the textile and textile product (TPT) sector, which faces a 25 percent US tariff.
“A level playing field allows us to improve our competitiveness and push for lower tariffs on goods the US does not produce,” he added.
Airlangga also noted that certain Indonesian commodities already enjoy a 0 percent tariff, such as copper concentrate and copper cathodes. These, he explained, align with the ongoing bilateral discussions on mineral trade.
“This aligns with strategic talks on minerals, including copper. The US has acknowledged this too. Indonesia sees these as industrial commodities, meaning processed products beyond raw ore, which also matches the statement by the US Trade Representative,” Airlangga concluded.
Annisa Febiola contributed to the writing of this article.
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