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Indonesia to Pursue Diplomatic Channels in Response to U.S. Reciprocal Tariffs

Indonesia to Pursue Diplomatic Channels in Response to U.S. Reciprocal Tariffs

Jakarta, April 8, 2025 – The Europe Today: Coordinating Minister for Food Affairs Zulkifli Hasan announced on Tuesday that the Indonesian government will soon initiate diplomatic efforts in response to the recent reciprocal tariff policy imposed by U.S. President Donald Trump.

Speaking in Jakarta, Minister Hasan said he had coordinated with Coordinating Minister for Economic Affairs Airlangga Hartarto and emphasized the urgency of diplomatic engagement. “We must conduct diplomacy quickly,” he stated.

Hasan underscored the strategic interdependence between Indonesia and the United States, noting that the U.S. serves as Indonesia’s primary soybean supplier. He clarified that Jakarta would not pursue a policy of retaliation through counter-tariffs, instead favoring negotiation. “We do not do retaliation. We do diplomatic talks,” he affirmed.

The Indonesian government’s position comes in response to a 32 percent import tariff recently imposed by the U.S. on Indonesian goods. Rather than escalate tensions through retaliatory measures, Indonesia has opted for diplomacy aimed at securing mutually beneficial outcomes.

Coordinating Minister Airlangga Hartarto earlier confirmed that Indonesia would submit a formal response by April 9, noting that an action plan is being developed with consideration of key factors such as U.S. imports and investments. Speaking at a limited coordination meeting held virtually on April 6, Hartarto said, “The strategy we have chosen is diplomacy. It reflects our commitment to preserving long-term bilateral trade relations and ensuring a stable investment climate.”

The Indonesian government is currently evaluating the potential impact of the new U.S. tariff policy on several export-oriented and labor-intensive sectors, including the footwear industry, which is particularly sensitive to global market shifts.

President Trump on April 2 announced a sweeping reciprocal tariff policy targeting several countries, including Indonesia. In addition to the targeted tariffs, the administration has introduced a 10 percent baseline tariff on imports from all countries.

Jakarta’s diplomatic approach aims to uphold national economic resilience while maintaining constructive trade and investment ties with the United States.