Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, shared insights on President Prabowo Subianto’s direct involvement in negotiating trade tariff revisions following U.S. President Donald Trump’s announcement of “Liberation Day” on April 2, 2025. President Prabowo’s swift response to Trump’s declaration led Indonesia to be the first country to formally reach out to the White House, as Airlangga revealed in a recent interview.
The negotiation team, led by Airlangga and consisting of various ministries and agencies, was already engaged in trade discussions with the OECD and the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). President Prabowo’s directive was to form a tailored trade package, termed as a “menu,” that could address the United States’ pressing trade concerns.
Efforts to lower Indonesia’s export tariffs to the U.S. from 32% to 19% were successful due to the meticulous preparation and compliance of Indonesia’s trade documentation and package. Airlangga personally engaged with U.S. Trade Representative Jamieson Greer and other American officials, ensuring Indonesia’s commitment to compliance.
Ultimately, a pivotal phone conversation between Presidents Prabowo and Trump sealed the deal, with both parties considering the negotiation successfully concluded. The decision to reduce tariffs to 19% was mutually agreed upon during this call, showcasing the importance of high-level communication and diplomacy in international trade relations.
