At a rice harvest ceremony in West Java on the 7th of April, 2025, Indonesian President Prabowo Subianto made it clear where his country stands on its future with the United States.
He said : “We will also open negotiations with America. We will say, we want a good relationship. We want a fair relationship. We want an equal relationship.”
Prabowo’s words signal a calculated diplomatic approach rather than retaliation, as his government prepares to address a steep 32% tariff imposed by former US President Donald Trump.
The levies set to kick in on the 9th of April, hit six Southeast Asian countries last week, including Indonesia.
But rather than respond with threats, Indonesia is putting together a delegation led by its chief economic minister, Airlangga Hartarto.
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Hartarto spent the 7th of April, 2025, talking with over a hundred business associations, collecting ideas to shape a counter-plan. The focus: strengthening trade ties instead of fueling tensions.
Early indications show Indonesia may respond by:
• Boosting purchases of US goods like cotton, wheat, oil, and gas
• Smoothing out non-tariff trade issues
• Considering tax cuts on selected US imports.
The delegation is also reviewing large-scale procurement, including US components for an Indonesian oil refinery.
There is talk of easing local content rules that affect American tech and telecom firms.
Despite the looming tariffs, Indonesia’s finance ministry says it’s sticking with its current fiscal stance for now, aiming to stay steady amid the uncertainty.