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How far should Indonesia go to appease Trump on tariffs?
Jakarta is weighing trade concessions, but analysts warn the cost may be long-term harm to local industries
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Indonesia should rethink its strategy of relaxing imports and local content rules to appease Washington as it could weaken its domestic industry, observers have said ahead of high-stakes trade talks at the White House this week.
In a speech responding to US President Donald Trump’s recent tariff moves, Indonesian President Prabowo Subianto said Indonesia’s restrictive import quotas – particularly on essential goods – were hampering trade and needed to be overhauled.
“Whoever wants to import [these commodities], please, feel free,” Prabowo said on April 8. “We’re no longer [assigning the import licences] and allowing only this or that product [to be imported].”
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The remarks came ahead of high-level trade talks between Indonesian and US officials, scheduled for Friday, as Jakarta seeks to roll back looming tariffs recently imposed by the Trump administration.
The US announced a 32 per cent tariff on Indonesian goods on April 2 under a sweeping new trade policy that imposed steep duties on countries with significant trade surpluses with Washington. Although Indonesia posted a US$16.8 billion surplus with the US in 2024, the measure – along with similar tariffs on most countries – was paused for 90 days last week to allow for negotiations.
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