Coordinating Minister Airlangga Reveals Potential Drop in Trump Tariff to 19%

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Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, shared details about 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. Airlangga, who leads Indonesia’s inter-ministerial negotiation team, mentioned that President Prabowo swiftly responded to Trump’s declaration by instructing the team to send a formal letter to the White House. Indonesia was the first country to officially respond to Washington, D.C. Airlangga revealed this information during an interview on Real Talk with Uni Lubis, highlighting President Prabowo’s personal review of the letter before its dispatch. The negotiation team, consisting of various ministries and agencies, was concurrently engaged in trade discussions with the OECD and the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). President Prabowo had instructed the team to devise a tailored trade package, referred to as a “menu,” incorporating President Trump’s expectations. The ultimate decision to lower Indonesia’s export tariffs to the U.S. from 32% to 19% was attributed to Indonesia’s compliant trade documentation and package. Airlangga confirmed meetings with U.S. Trade Representative Jamieson Greer and virtual engagements with other U.S. officials. The negotiation process culminated in a phone conversation between Presidents Prabowo and Trump, leading to the finalization of the deal and the agreed tariff reduction.

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