Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed President Prabowo Subianto’s active involvement in negotiating trade tariff revisions following U.S. President Donald Trump’s announcement of “Liberation Day” on April 2, 2025. Airlangga, who led Indonesia’s inter-ministerial negotiation team, shared that President Prabowo promptly responded to Trump’s declaration by instructing the team to send a formal letter to the White House, making Indonesia the first country to officially respond to Washington, D.C.
During an interview on Real Talk with Uni Lubis, Airlangga mentioned that President Prabowo personally reviewed the letter before it was sent to the White House, emphasizing Indonesia’s swift response after Trump’s tariff announcement. Additionally, he highlighted ongoing trade discussions with the OECD and the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) at the time.
President Prabowo directed the team to develop a tailored trade package, referred to as a “menu,” aligned with U.S. expectations and existing trade discussions. Airlangga explained that this approach aimed to address specific components significant to each party, emphasizing fair trade propositions. Lowering Indonesia’s export tariffs to the U.S. from 32% to 19% was achieved through comprehensive trade documentation and package compliance.
Meetings with U.S. Trade Representative Jamieson Greer and other officials, as well as timely submission of required documents and responses, contributed to Indonesia’s compliance status. A phone call between Presidents Prabowo and Trump marked a pivotal moment in finalizing the deal, ultimately leading to a mutual agreement on the tariff reduction during the call.
Airlangga concluded that both sides viewed the negotiation as resolved, with decisions regarding the 19% tariff reduction determined by the two presidents. This successful negotiation showcased Indonesia’s commitment to fulfilling compliance standards and engaging in transparent trade discussions with the United States.
