Indonesia opts for diplomacy over retaliation amid US tariff imposition

Indonesia will not retaliate against the 32 per cent trade tariff imposed by US President Donald Trump on its economy, according to the country’s senior economic minister.

This marks the first official response from the Indonesian government to the new tariff, Caliber.Az reports via foreign media.

Chief Economic Minister Airlangga Hartarto said in a statement that Indonesia would focus on diplomatic efforts and negotiations to find mutually beneficial solutions in light of Trump’s announcement of sweeping global tariffs earlier this week.

“The approach was taken by considering the long-term interest of bilateral trade relations, as well as to maintain the investment climate and national economic stability,” Hartarto said. 

He also emphasized that Indonesia would provide support to sectors expected to be affected by the tariffs, including the apparel and footwear industries. 

The 32 per cent tariff on Indonesia, one of six Southeast Asian countries impacted by the new measure, is set to take effect on April 9. In response, the Indonesian government will gather input from businesses to help formulate a strategy to address the US tariffs. Hartarto also mentioned that Indonesia would explore opportunities to increase trade with European countries as an alternative to both the US and China. 

In addition, Jakarta has revealed plans to send a high-level delegation to the US for direct negotiations with the American government. According to Indonesian government data, Indonesia recorded a trade surplus of $16.8 billion with the US in 2024, making it the country’s third-largest export destination. Exports to the US totaled $26.3 billion, with electronics, apparel, and footwear being among the main exports.

By Naila Huseynova