Indonesia and US Set 60-Day Deadline to Resolve Tariff Dispute

Indonesia and the United States have agreed to conclude negotiations over a 32 percent US tariff on Indonesian imports within 60 days, according to official statements from both governments.

The talks follow President Donald Trump’s April 2 announcement of sweeping reciprocal tariffs, which placed Indonesia among several Southeast Asian countries facing new trade barriers.

The tariff, originally set to take effect on April 9, was postponed for 90 days, giving Indonesia a temporary reprieve and a window to negotiate a compromise.

Coordinating Minister for Economic Affairs Airlangga Hartarto, who leads the Indonesian delegation in Washington, confirmed the timeline after meetings with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.

Hartarto stated that both sides have agreed on a negotiation framework that covers trade, investment, critical minerals, and supply chain resilience. The framework aims to translate these points into formal agreements within the 60-day period, with one to three rounds of talks expected.

Indonesia has positioned itself as a constructive partner by offering to increase imports of US oil, gas, wheat, soybeans, and capital goods. The government also pledged to facilitate U.S. business operations in Indonesia by easing permits.

Additionally, it promised to provide incentives. Officials highlighted opportunities for collaboration in critical minerals, such as nickel, which are vital for US manufacturing and technology sectors.

Indonesia Engages with US on Trade and Tariff Dispute

Foreign Minister Sugiono and other senior officials have engaged directly with US Secretary of State Marco Rubio, emphasizing Indonesia’s commitment to deepening trade and investment ties.

Jakarta has also outlined its broader goals to strengthen energy and food security, advance resource processing, and improve workforce quality. The tariff dispute carries significant stakes for Indonesia’s export-driven economy.

US-bound exports, including textiles, footwear, and electronics, support millions of jobs and generate billions in revenue. The government’s approach reflects a pragmatic, mercantile strategy: protect access to the US market, attract American investment, and avoid escalation.

Other Southeast Asian nations face similar tariffs, but Indonesia is among the first to secure a formal negotiation process. The outcome of these talks will determine whether Indonesia can preserve its competitive position and maintain stable trade relations with the US.

Both sides have signaled willingness to reach a mutually beneficial agreement before the deadline. All details and figures are drawn from official government sources and public statements.