The Government Hopes The Agreement With The US Will Boost Indonesia's Competitiveness

Negotiations with the United States have not been easy. The Indonesian delegation often frowned during the lobbying process for reciprocal tariff reductions issued by US President Donald Trump. 

The final figure of 19 percent for Indonesian products entering the US was also said to be much better than other countries of the same level. Without tariff cuts, or if the tariff rate remained at 32 percent, one million workers in domestic labor-intensive sectors are at risk of losing their jobs. 

This was conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto in a press conference at his office in Jakarta. Indonesia hopes for a tangible positive impact from the agreement. 

"Indonesia itself hopes that the agreement with the US will increase competitiveness, enhance innovation, R&D, and capacity building, because that is what the US will provide," Airlangga explained on Thursday, July 24, 2025. 

Furthermore, the Indonesia-US trade agreement is also expected to stimulate the domestic digital economy. Several US companies have committed to investing in the data center sector in Indonesia. 

Boosting inter-island interconnection and logistics 

The trade agreement with Washington is also expected to improve inter-island interconnection and domestic logistics. "Of course, our inter-island interconnection requires many aircraft. And one of the aircraft that can be provided is Boeing, so cargo can also be transported," said Airlangga. 

"Of course, this trade will be followed by investment. So, trade, investment, services, and financial services are President Prabowo's objectives, which is why he decided with President Trump that Indonesia would be one of the countries with the lowest trade deficits in the United States," Airlangga added. 

Tag: Airlangga Hartarto Donald Trump