JAKARTA - The Indonesian government is facing serious challenges after Donald Trump, President of the United States (US), imposed a reciprocal tariff of 32% from a tariff base of 10% on Indonesian goods entering the US market.

The Indonesian Ministry of Foreign Affairs (Kemlu), in its official statement, explained that President Prabowo Subianto has ordered the Red and White Cabinet to immediately implement structural improvements and deregulation policies to increase competitiveness, attract investment, and create more jobs.

In addition, the Indonesian Government targets to simplify regulations and remove non-tariff barriers that have been highlighted in the National Trade Estimate (NTE) 2025, published by the US Trade Representative.

As part of the economic diplomacy effort, a high-level delegation from Indonesia will soon depart for Washington D.C. to conduct direct negotiations with the US government. The delegation will bridge differences in views, convey Indonesia's firm stance, and offer mutually beneficial solutions.

The Indonesian Ministry of Foreign Affairs emphasised that intensive communication will continue at various levels, including cooperation with Malaysia as ASEAN Chair to formulate joint steps in dealing with the US tariff policy.

In addition, the government and Bank Indonesia will ensure the stability of the rupiah exchange rate and maintain foreign exchange liquidity to support the needs of the business world. ‘The government will also strive to keep the yield of Government Securities (SBN) stable amid the global financial market turmoil,’ the ministry said. (EF/KR/LM)