Indonesia and the US Agree to Accelerate Tariff Negotiations, with the US Interested in Indonesian Nickel and Copper Mines
Thu 10 Jul 2025, 08:46 AM
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The Indonesian government continues to strengthen trade relations with the United States (US). This was marked by a crucial meeting between the Indonesian delegation led by Coordinating Minister for Economic Affairs Airlangga Hartarto and high-ranking US officials, namely US Secretary of Commerce Howard Lutnick and United States Trade Representative Jamieson Greer, on Wednesday (July 9, 2025).
This meeting marked Indonesia 's first since US President Donald Trump announced new tariff policies on July 7. Indonesia was one of the first countries to be invited to discuss the continuation of the tariff agreement, demonstrating the strong commitment of both countries to maintaining stable trade relations.
During the meeting, Coordinating Minister Airlangga expressed his appreciation for the constructive negotiations with the US. He emphasized that the discussions covered a range of important issues, from tariffs and non-tariff barriers to the digital economy, economic security, and investment and commercial cooperation.
"We have reached a common understanding with the US regarding the progress of the negotiations. Moving forward, we will continue to strive to conclude these negotiations on a basis of mutual benefit", Airlangga said in a written statement on Thursday (July 10, 2025).
The two countries agreed to expedite tariff negotiations over the next three weeks to achieve the best possible outcome. Coordinating Minister Airlangga also emphasized the importance of improving overall Indonesia-US economic relations.
"We want to strengthen Indonesia's commercial relations with the US. Last week, Indonesian companies in the agriculture and energy sectors signed memorandums of understanding (MoUs) with US companies to purchase superior products and increase investment", he said.
The US is interested in cooperation in the mining sector
During the talks, the US also expressed strong interest in strategic cooperation in critical minerals, including nickel, copper, and cobalt—commodities Indonesia possesses in significant quantities. Cooperation in these sectors is considered crucial, particularly in supporting the global clean energy supply chain and technology transition.
"Indonesia has vast reserves of nickel, copper, and cobalt. We need to optimize the potential for collaboration in processing these critical minerals", added Coordinating Minister Airlangga.
The Indonesian delegation conveyed that negotiations will continue with mutual respect and good faith, aiming for results that bring concrete benefits to both countries.
In this meeting, Coordinating Minister Airlangga was accompanied by a number of high-ranking officials, including: Secretary of the Coordinating Ministry for Economic Affairs Susiwijono, Deputy for Economic Cooperation and Investment Edi Prio Pambudi, Deputy for Digital Economy Ali Murtopo, and Assistant Deputy for Bilateral Economic Cooperation Irwan Sinaga.
With Trump’s 32% Import Tariff in Effect, Prabowo Sets Diplomatic Strategy
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto continued his official trip to the United States after accompanying President Prabowo Subianto to Brazil.
This departure was carried out as a rapid response to the United States Government's latest policy regarding import tariffs for products from Indonesia of 32 percent.
Spokesperson for the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, Haryo Limanseto, Coordinating Minister Airlangga is scheduled to arrive in Washington DC, United States on Tuesday, July 8, 2025.
This visit is strategic in nature and is part of the government's diplomatic steps to maintain Indonesia's trade stability.
"Coordinating Minister Airlangga is scheduled to hold a meeting with representatives of the US government to immediately discuss US President Donald Trump's recently issued tariff decision on Indonesia", Haryo said, as quoted in his statement, Tuesday (8/7/2025).
Impact of Import Tariffs
Haryo explained that Coordinating Minister Airlangga's visit to the US demonstrates Indonesia's commitment to addressing the dynamics of global trade policy, particularly those of key partner countries like the United States.
This is because the US decision under President Donald Trump to increase import tariffs is considered to have a significant impact on several national export sectors. Therefore, Airlangga's presence in the US is expected to mitigate potential trade pressures.
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