Indonesia will not retaliate against Trump tariff, official says

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JAKARTA (Reuters) -Indonesia will not retaliate against U.S. President Donald Trump’s 32% trade tariff on Southeast Asia’s largest economy, its senior economic minister said on Sunday in the government’s first response to the levy.

Chief Economic Minister Airlangga Hartarto said in a statement that Indonesia would pursue diplomacy and negotiations to find mutually beneficial solutions after Trump announced sweeping global tariffs on Wednesday.

“The approach was taken by considering the long-term interest of bilateral trade relation, as well as to maintain the investment climate and national economic stability,” Airlangga said, adding that Jakarta will support potentially impacted sectors, such as apparel and footwear industry.

Trump’s tariff on Indonesia, one of six hard-hit Southeast Asian countries, is set to take effect on Wednesday.

The Indonesian government will gather inputs from businesses on Monday to help formulate strategy to address the U.S. tariff, and will find ways to increase trade with European countries as an alternative to the U.S. and China, Airlangga said.

Jakarta has said it would send a high-level delegation to the U.S. for direct negotiations with the government.

Indonesia posted a $16.8 billion trade surplus last year with the U.S., which was its third-biggest export destination, receiving shipments worth $26.3 billion in 2024, according to Indonesian government data.

Indonesia’s main exports to the U.S. include electronics, apparel and clothing, and footwear.

(Reporting by Stefanno Sulaiman; Editing by William Mallard)