Indonesia plans to offer preferential tariffs to American products.

The Indonesian government recently stated that it is prepared to present a list of preferential tariffs for certain American products ahead of the second round of trade talks with the United States. Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, noted that this move aims to speed up bilateral trade negotiations and reach an agreement before reciprocal tariffs are implemented in July.

This upcoming list represents Indonesia's substantive efforts to facilitate smooth negotiations, highlighting Jakarta's strategic intent to seek pragmatic cooperation and maintain economic stability in the current global trade landscape.

Aiming for Agreement before July to Avoid Tariffs

According to Hartarto, Indonesia hopes to finalize negotiations and reach a consensus before July to avoid reciprocal tariff measures. He pointed out that given the complex trade situation, Indonesia is ready to adopt a proactive approach to reduce uncertainties and ensure that domestic businesses can benefit from the emerging trade framework.

Although specific goods have not yet been disclosed, analysts suggest that agricultural products, high-tech equipment, and energy products of interest to the U.S. may be prioritized.

OECD Meeting as a Key Contact Point

Hartarto will meet with U.S. Trade Representative Jamieson Greer during the OECD meeting in Paris this Tuesday. This bilateral engagement is seen as crucial preparation for advancing the second round of negotiations and is expected to lay the technical and policy foundation for their talks in Washington.

It is understood that besides tariff issues, the negotiations may also cover topics such as digital trade, raw material access, and investment transparency. The U.S. also faces domestic pressure to achieve tangible outcomes in cooperation with Indo-Pacific countries, including Indonesia.

Indonesia Expands Multilateral Trade Framework

Indonesia's concessions to the U.S. can also be viewed as part of its efforts to deepen multilateral trade relations and enhance regional influence. Against the backdrop of the "Indo-Pacific strategy," Indonesia aims to maintain a balance between the U.S. and China, demonstrate openness through negotiations with the U.S., and strengthen its competitiveness in both the ASEAN and global markets.

Hartarto has repeatedly emphasized in public statements that Indonesia does not wish to be embroiled in great power rivalries, but rather seeks to serve as an important bridge connecting Asia-Pacific and the West. In the future, if broader tariff coordination arrangements with the U.S. are achieved, Indonesia is expected to further expand its exports to the U.S. and attract more investment.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

Very good!（53）