Indonesia is in Washington this week with a clear goal: to negotiate a lower tariff rate on its exports to the United States. The visit is part of a high-level meeting aimed at strengthening trade and economic cooperation between the two countries.
President Prabowo Subianto arrived in Washington on Tuesday. He is attending the first leaders’ meeting of the U.S. Board of Peace, an event bringing together top officials from both countries. During his visit, Indonesia is also set to sign a trade agreement with the United States. These steps are designed to reinforce diplomatic and economic ties while addressing specific trade issues.
Presidential spokesperson Prasetyo Hadi explained that Indonesia hopes to reduce its current tariff rate further. “Perhaps if we only look at other countries, there are those whose tariff rate was reduced to 18%. Yes, we want to reduce it to 18%, but it is not up to us to decide,” he said. Hadi added that a positive and cooperative relationship between Prabowo Subianto and U.S. President Donald Trump could lead to policy changes that might favor Indonesia’s request.
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The aim is to make Indonesian exports more competitive in the U.S. market by securing a tariff rate similar to that enjoyed by other countries. The ongoing discussions show that both nations are working to strengthen trade ties, with diplomacy playing an important role in reaching agreements.
Current Tariff Situation and Past Agreements
The trade talks build on a previous agreement between Indonesia and the United States. Last year, a deal was reached that reduced tariffs on Indonesian exports from 32% to 19%. This marked a significant improvement and provided businesses better access to the U.S. market.
Now, Indonesia hopes to take the next step by lowering tariffs even further, ideally to 18%. Achieving this rate would make a wide range of its goods more affordable and competitive for American consumers and businesses. While the decision ultimately rests with U.S. authorities, the delegation believes that positive relations between the two countries’ leaders could help reach the goal.
Officials emphasized that while Indonesia has clear targets, the final approval depends on discussions and decisions made by the United States. The reduction of tariffs is seen as a way to encourage stronger trade flows, enhance market access, and support economic cooperation between both nations.
Bilateral Meetings and Economic Cooperation
As part of the Washington visit, Prabowo Subianto is expected to hold a bilateral meeting with Donald Trump. These discussions are planned to focus on strategic cooperation and the overall strengthening of ties between Indonesia and the United States.
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In addition to these meetings, the Indonesian delegation will attend an economic forum hosted by the U.S. Chamber of Commerce. This forum brings together government officials and business leaders to explore trade opportunities, partnerships, and economic initiatives.
Indonesia’s cabinet secretary confirmed that the focus of the visit is on strengthening relationships and boosting cooperation through trade agreements. The meetings and forums provide a platform to negotiate practical steps for improved trade, strategic collaboration, and mutual economic benefit.
The discussions in Washington highlight the importance Indonesia places on trade relations with the United States. By aiming to reduce tariffs further, the country hopes to enhance the competitiveness of its exports and strengthen long-term economic ties. While the final tariff decision rests with U.S. authorities, the visit underscores Indonesia’s commitment to diplomatic engagement and active participation in international trade negotiations.