Indonesia Seeks Lower Tariffs Than Vietnam in Ongoing U.S. Negotiations

Coordinating Minister for Economic Affairs Airlangga Hartarto expressed optimism that Indonesia's negotiations with the United States over reciprocal tariffs will lead to favorable outcomes.

He hopes that Indonesia will secure lower tariffs than Vietnam, which has finalized a 20 percent rate. Goods routed through Vietnam from other countries are currently subject to a 40 percent tariff.

"If Vietnam has 20 to 40 percent, we certainly hope for a better deal than that," Airlangga said at his office in Lapangan Banteng, Jakarta, on Thursday, July 3, 2025.

He explained that Indonesia is not the only country still in discussions with the U.S. on tariff agreements. More than 100 countries, according to him, are still in the negotiation phase.

"The countries that have reached an agreement so far are the UK, China, and Vietnam. China's deal, however, is only temporary and valid for 90 days," he noted.

Currently, an Indonesian delegation is in Washington DC, alongside representatives from India, Japan, the European Union, Vietnam, and Malaysia. Airlangga said this shows Indonesia’s strong commitment to engaging with the U.S. on trade issues.

"Indonesia has submitted written proposals, which have already been discussed with the USTR, the Secretary of Commerce, and the Secretary of the Treasury," he added.

Indonesia is scheduled to sign a memorandum of understanding on Monday, July 7, 2025, for energy imports and investment projects totaling US$34 billion. Of that amount, US$15.5 billion represents commitments to import U.S. energy products.

Airlangga emphasized that Indonesia's commitment to buying from the U.S. is long-term in nature.

"Although the U.S. currently has a US$19 billion trade deficit with Indonesia, the value of our proposed purchases exceeds that, totaling US$34 billion," he said.

Previously, U.S. President Donald Trump announced a trade agreement with Vietnam following talks with General Secretary of the Communist Party of Vietnam, To Lam. According to Antara, the U.S. has been granted full access to the Vietnamese market under zero tariffs.

However, Vietnam will pay a 20 percent tariff for goods sent to the U.S., while shipments from other countries passing through Vietnam will face a 40 percent tariff.

Source: ASEAN & Beyond En.tempo.co