Highlights of tariff negotiations between Indonesia and the United States

Indonesia's Economic Coordinating Minister, Foreign Affairs Minister, and Finance Minister will serve as President Prabowo's government delegation to Washington, D.C., on April 16-23, 2025, to negotiate with the U.S. Trade Representative, the Secretary of the Treasury, and the Secretary of Commerce to take advantage of the 90-day tariff implementation extension (until June 9, 2025) granted by Trump.Key points of the negotiations between the two sides include Indonesia's commitment to import an additional $18-19 billion in products from the U.S. to balance the U.S.-Indonesia trade deficit, involving a wide range of commodities such as agricultural products, but the details of the specific imports have not yet been announced; Indonesia will relax VAT tariffs on U.S. imports, which is universally applicable and is different from the previous relaxation of the local content of the components (TKDN) requirement for U.S. ICT products Indonesia will relax TKDN requirements only for U.S. imports in the ICT sector, a measure that is part of the negotiations and will not affect the business of companies from other countries in Indonesia; Indonesia will promote state-owned enterprises to invest in the U.S. in a variety of forms in the fields of oil and gas and information technology, but the details have not yet been determined, and will be carried out through the investment management agency BPI Danantara.