Indonesia's Coordinating Minister for Economic Affairs, Airlangga, stated that the United States plans to impose a 10% tariff on Indonesian goods, but some major export products are expected to receive exemptions. This will help stimulate Indonesia's economic growth and enhance export competitiveness.
According to reports, the U.S. Trade Representative's Office announced this week that, based on the results of an investigation into products associated with forced labor, it recommends imposing tariffs of up to 12.5% on imports from 60 economies, with Indonesia facing a rate of 10%, lower than some competitors.
On Friday, Airlangga met with U.S. Trade Representative Katherine Tai during the Organisation for Economic Co-operation and Development meeting in Paris, France.
He said that Indonesia's application for tariff exemptions for 18 products is expected to be approved, but he did not disclose the specific products involved.
"These strategic measures will strongly stimulate Indonesia's industries, reduce export costs, and enhance the competitiveness of major goods in the U.S. market."
Airlangga also expects that cathode copper exported by Freeport Indonesia—a company controlled by Freeport-McMoRan but majority-owned by the Indonesian government—may receive an exemption from U.S. 'Section 232' tariffs.
In addition, tariff measures implemented by the Trump administration under the International Emergency Economic Powers Act were ruled invalid by the U.S. Supreme Court on February 20 this year. Subsequently, the U.S. switched to imposing a temporary 10% tariff.
It is understood that the United States and Indonesia had signed a reciprocal tariff agreement before the court ruling, but both sides have yet to complete the ratification process.
On Friday, Airlangga met with U.S. Trade Representative Katherine Tai during the Organisation for Economic Co-operation and Development meeting in Paris, France.
He said that Indonesia's application for tariff exemptions for 18 products is expected to be approved, but he did not disclose the specific products involved.
"These strategic measures will strongly stimulate Indonesia's industries, reduce export costs, and enhance the competitiveness of major goods in the U.S. market."
Airlangga also expects that cathode copper exported by Freeport Indonesia—a company controlled by Freeport-McMoRan but majority-owned by the Indonesian government—may receive an exemption from U.S. 'Section 232' tariffs.
In addition, tariff measures implemented by the Trump administration under the International Emergency Economic Powers Act were ruled invalid by the U.S. Supreme Court on February 20 this year. Subsequently, the U.S. switched to imposing a temporary 10% tariff.
It is understood that the United States and Indonesia had signed a reciprocal tariff agreement before the court ruling, but both sides have yet to complete the ratification process.