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Indonesia expects to finalize its tariff negotiations with the United States by the end of the year, signaling continued momentum in bilateral trade relations despite reports of growing tensions. The announcement was made by Indonesia’s chief negotiator and Coordinating Minister for Economic Affairs, Airlangga Hartarto, who said a government delegation will soon travel to Washington, D.C. to continue discussions with U.S. counterparts.
The statement followed a phone call held on Thursday between Airlangga and U.S. Trade Representative Jamieson Greer, which focused on the progress of tariff negotiations and the implementation of prior commitments. According to Airlangga, both countries remain aligned with the objectives outlined in the Leaders’ Declaration agreed upon on July 22, and Indonesia is committed to completing what was previously negotiated.
Indonesia–U.S. trade talks have drawn attention after a U.S. official, speaking anonymously, suggested that the proposed trade deal was at risk of collapse. The official claimed that Jakarta had stepped back from several commitments that had already been agreed upon, raising concerns in Washington over the reliability of the agreement.
However, Indonesian officials rejected claims that negotiations were failing. Jakarta emphasized that talks with Washington are still ongoing and described the current situation as a normal part of trade negotiation dynamics. Officials added that further harmonization of language and technical details is required before the agreement can be finalized, a process they said is common in complex international trade deals.
The negotiations gained prominence after the United States reduced tariffs on Indonesian products to 19%, down from the previous 32%. This reduction followed Indonesia’s agreement to eliminate tariffs on more than 99% of U.S. goods entering its market and to remove non-tariff barriers affecting American companies operating in Indonesia. These measures were seen as a major step toward improving market access and strengthening economic cooperation between the two countries.
As both sides prepare for further talks in Washington, the outcome of the negotiations will be closely watched by businesses and investors, given the potential impact on Indonesia–U.S. trade flows and regional economic stability.
