Airlangga: US Tariffs a Wake-Up Call for Indonesia to Reform

Jakarta. Coordinating Minister for Economic Affairs Airlangga Hartarto said Wednesday evening that the reciprocal tariff policy announced by US President Donald Trump should serve as a momentum for Indonesia to carry out critical economic reforms.
Speaking during the Investor Daily Roundtable talk show in Jakarta, Airlangga noted that the Indonesian government has already begun and will continue to take key measures in response to the US move. These include strengthening regional and international cooperation, as well as pursuing domestic reforms to address structural weaknesses such as low industrial competitiveness and limited household purchasing power.
He pointed out that Indonesia has been actively working toward accession to the Organisation for Economic Co-operation and Development (OECD) and joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These efforts, he said, have drawn positive attention from the US government during discussions with US Trade Representative Ambassador Jamieson Greer and Treasury Secretary Scott Bessent.
"Indonesia has been preparing itself for internal reforms, and we communicated these efforts to the US as well. These are best practices that other countries are also seeking. In our meeting with the US Treasury, Indonesia’s plan to join the OECD was also discussed," Airlangga told program host Enggartiasto Lukita.
He acknowledged that President Trump's reciprocal tariff policy has raised concerns globally.
Indonesia ranks eighth among the countries affected by the US tariff hike, facing a 32 percent increase. In total, around 60 countries are subject to reciprocal tariffs equivalent to half the rate they impose on US goods.
"That’s why President Prabowo Subianto has instructed us to respond swiftly, including proactive outreach to the US. Indonesia's early response was appreciated by the US, as we were among the first to react. That early engagement could provide an early-mover advantage," Airlangga said.
Tags: Keywords:Related Articles
Indonesia Says Local Content Reforms Are Domestic-Driven, Not Response to US Tariffs
The USTR has cited Indonesia’s local content regulations as a trade barrier that prompted the reciprocal tariffs.Airlangga Invites Japanese Chamber Members to Invest in Indonesia’s Strategic Projects
Japan currently ranks as Indonesia’s sixth-largest source of foreign investment, with over 12,800 projects to date.Japan-Backed Muara Laboh Geothermal Reaches Financial Close for Expansion
Muara Laboh geothermal project's second unit will enter operations in 2027.Indonesia’s Q1 Economic Growth Slows to 4.87 Pct
This was the lowest Q1 growth that Indonesia had ever recorded over the past three years.Indonesia Aims to Seal EU Trade Deal by Mid-2025 After Years of Talks
Indonesia aims to finalize its long-delayed CEPA trade pact with the EU by mid-2025, eyeing tariff cuts and equal market access benefits.‘Early Bird Gets the Worm’: Airlangga Reflects on Swift Trade Talks with US
As Southeast Asia braces for the fallout from Washington’s sweeping tariff hikes, Indonesia is positioning itself as a proactive negotiator.As US Tariff Looms, Indonesia Now Closer to Joining Mexico’s CPTPP Trade Club
The CPTPP is a trade pact that evolved out the Trans-Pacific Partnership (TPP) -- a separate agreement that the Trump-led US had exited.Airlangga: US Tariffs a Wake-Up Call for Indonesia to Reform
Indonesia ranks eighth among the countries affected by the US tariff hike, facing a 32 percent increase.‘Don’t Fall Into Trump’s Talking Points,’ Indonesia Urged Amid US Tariff Escalation
Lili pointed out that the US maintains a surplus in services trade with Indonesia and that US companies have generated trillions in profit.Mari Elka Calls for Export Diversification Amid Looming US Tariffs
Mari Elka warns Indonesia must boost domestic resilience and expand global markets to cushion the impact of looming US tariffs.The Latest
Indonesia Eyes Tourism Surge with Phuket, Bangkok Flights to Medan, Surabaya
Prabowo Welcomes New Thailand-Indonesia Flights to Boost Tourism and Trade‘Sell America’ Wave Hits Wall Street as Moody’s Downgrades US Credit Rating
Moody’s downgrade of U.S. credit outlook sparks 'Sell America' wave, sending stocks, bonds, and the dollar lower on mounting debt fears.Lawmaker Criticizes ‘Unfit’ Aircraft After Hajj Flight Forced to Land in India
A Hajj flight carrying Indonesian pilgrims landed in India due to technical issues, prompting safety concerns and a probe by lawmakers.Four Killed as Train Hits Motorcycles After Crossing Gate Opens Prematurely
As soon as the gate lifted, several motorcyclists began to cross -- unaware that a second train was approaching on a parallel track.Indonesia, Thailand Sign Health Pact as COVID Cases Surge in Bangkok
Indonesia and Thailand sign a health MoU in Bangkok as COVID-19 cases rise, aiming to strengthen pandemic readiness and health systems.Most Popular
