‘Early Bird Gets the Worm’: Airlangga Reflects on Swift Trade Talks with US

Heru Andriyanto
May 1, 2025 | 10:54 am
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Coordinating Minister for Economic Affairs Airlangga Hartarto, second right, and host Enggartiasto Lukita listen to a participant during the Investor Daily Roundtable at the Westin Hotel in Jakarta, Wednesday, April 30, 2025. (B-Universe Photo/Joanito De Saojoao)
Coordinating Minister for Economic Affairs Airlangga Hartarto, second right, and host Enggartiasto Lukita listen to a participant during the Investor Daily Roundtable at the Westin Hotel in Jakarta, Wednesday, April 30, 2025. (B-Universe Photo/Joanito De Saojoao)

Jakarta. Indonesia moved swiftly to engage the United States over sweeping new tariffs, with Economic Chief Airlangga Hartarto saying early diplomatic efforts could secure Jakarta a strategic edge amid escalating trade tensions.

Airlangga shared insights from recent meetings with American officials on Wednesday evening in his first media interview since returning from Washington.

Indonesia dispatched a delegation to Washington less than a week after US President Donald Trump, on April 2, announced significant tariff increases targeting countries with which the US has trade deficits. Under the new policy, Indonesian goods face a 32 percent tariff -- on top of an existing 10 percent baseline tariff.

In a swift response, the Indonesian government sent letters to the US Trade Representative (USTR), the Secretary of Commerce, and the Secretary of the Treasury, outlining its stance and requesting dialogue, Airlangga said.

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These letters and accompanying documents were sent even before Trump announced a 90-day delay on the tariff implementation for all countries except China.

Foreign Minister Sugiono was the first to arrive in Washington, meeting with US Secretary of State Marco Rubio. He was later joined by a delegation of economic ministers led by Airlangga.

From April 16 to 23, Indonesian officials held separate meetings with US Secretary of Commerce Howard Lutnick, US Trade Representative Jamieson Greer, and Treasury Secretary Scott Bessent.

“President Prabowo Subianto gave clear directives to engage with the US without delay. The US appreciated our prompt response, which gave us an early-mover advantage,” Airlangga said at the Investor Daily Roundtable in Jakarta.

Japan and Vietnam also sent negotiation teams to Washington within a week of Trump’s announcement.

“Vietnam faces a more complex situation, as the US accounts for 30 percent of its total exports, compared to 12 percent for Indonesia,” Airlangga noted.

“Indonesia is relatively insulated from the new US tariffs,” he said with a smile. “Our footwear products were already subject to tariffs of up to 20 percent before the hike -- higher than comparable Vietnamese exports. However, the rates have now gone even higher.”

Airlangga emphasized that the discussions were reciprocal in nature, with Indonesia proposing a new framework for fair and mutually beneficial bilateral trade.

“We are simply asking for a level playing field, especially when compared to how the US treats its other ASEAN trade partners,” he said.

Indonesia’s trade relationship with the US is currently governed by the Trade and Investment Framework Agreement (TIFA), which dates back to the Soeharto era, Airlangga added.

“Indonesia is defending its national interests while pursuing a win-win solution,” Airlangga told Enggartiasto Lukita, executive chairman of B-Universe Media Holdings.

The US is Indonesia’s second-largest export market, and many Indonesian jobs depend on this trade relationship, he said.

Indonesia is seeking fairer treatment for several key export categories, especially labor-intensive goods such as footwear, textiles, furniture, and shrimp. These products fall within the highest tariff brackets and risk losing their competitiveness in the US market.

In return for tariff relief, Indonesia has proposed trade concessions, including increased imports of US liquefied petroleum gas, gasoline, soybeans, soybean meal, and capital goods, Airlangga explained.

Although no binding agreement was reached, the discussions laid a solid foundation for future technical negotiations on Indonesia-US trade, he said.

Regional Approach
As Southeast Asia braces for the fallout from Washington’s sweeping tariff hikes, Indonesia is positioning itself as a proactive negotiator.

At the time of Trump’s tariff announcement, Airlangga was already in Malaysia, working to coordinate a regional response through ASEAN. Malaysia currently chairs the regional economic bloc.

“Shortly after the US announcement, I had the opportunity to discuss this informally with Prime Minister Anwar Ibrahim,” Airlangga said.

“ASEAN’s collective stance is to respond jointly to the US unilateral move. We remain committed to upholding the fundamental rules of trade as governed by the WTO.”

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