economy

Trump's Policy Of Maintaining A 32 Percent Tariff Has Prompted Sri Mulyani To Speak Out

Indonesian Finance Minister Sri Mulyani Indrawati has commented on the decision made by United States President Donald Trump, who has confirmed that a 32 percent tariff will be imposed on all products from Indonesia starting August 1, 2025.

Sri Mulyani indicated that the government will respond to this policy through inter-ministerial coordination. She also mentioned that the Indonesian Negotiation Team is set to arrive in the U.S. this Tuesday to continue discussions with representatives of the U.S. Government.

"Later, Minister Coordinating (Airlangga Hartarto) will address it. We will respond on Tuesday," Sri Mulyani stated after attending a plenary meeting of the Indonesian House of Representatives in Jakarta on Tuesday.

During the same occasion, Deputy Finance Minister Anggito Abimanyu did not provide detailed information regarding the impact of the tariff policy on state revenue, considering that its implementation is not yet effective.

"It is not effective yet, we do not know what will happen later. I have not commented, as I do not have a final understanding of the situation," he added.

Nevertheless, he acknowledged that the negotiation process will continue.

"I believe so (the negotiations will continue)," Anggito stated.

Separately, Coordinating Minister for Economic Affairs Airlangga Hartarto is scheduled to depart for Washington D.C., U.S., on Tuesday (July 8) to further the trade tariff negotiations with the U.S. Government.

"Following the statement from the United States Government regarding the latest import tariff policy for Indonesia, Coordinating Minister for Economic Affairs Airlangga Hartarto continued his journey to Washington DC, after previously accompanying President Prabowo Subianto to Brazil," stated Haryo Limanseto, Spokesperson for the Coordinating Ministry for Economic Affairs, when contacted in Jakarta on Tuesday.

According to Haryo, the Indonesian Government is still exploring the possibility of negotiation.

"The Indonesian Government will optimize the available opportunities to safeguard national interests moving forward," he remarked.

In an official letter bearing the White House letterhead dated July 7, 2025, addressed to President of the Republic of Indonesia Prabowo Subianto, President Trump indicated that a tariff of 32 percent would continue to apply to all Indonesian products, separate from other sectoral tariffs.

"Please understand that the 32 percent figure is significantly less than what is needed to eliminate the Trade Deficit disparity with your country," Trump wrote in a letter he publicly shared on social media.

Trump also warned that if Indonesia is perceived to retaliate by raising tariffs, he threatened to respond by increasing the import tariff value by that amount "plus the 32 percent tariff we have set."

Nevertheless, Trump assured that Indonesia would not incur tariffs if it "decides to build or produce its products in the United States," while guaranteeing that its application would be processed and approved within weeks.

He also stated that the tariff figure could still change if Indonesia agrees to adjust its trade policies and create a national market ecosystem that is more open to the US."

Tag: 32 Percent Tariff Donald Trump Indonesian Finance Minister Sri Mulyani Indrawati