news

Regarding Trump's Continued 32 Percent Tariff, Sri Mulyani Speaks Out

Indonesian Finance Minister Sri Mulyani Indrawati has spoken out about US President Donald Trump's decision to impose a 32 percent tariff on all Indonesian products starting August 1, 2025. 

Sri Mulyani stated that the government will respond to the policy through cross-ministerial coordination. She also stated that the Indonesian Negotiation Team will arrive in the US this Tuesday to continue negotiations with US government representatives. 

"Later, Coordinating Minister (Airlangga Hartarto). We will respond on Tuesday," Sri Mulyani said when met after attending a Plenary Session of the Indonesian House of Representatives (DPR RI) in Jakarta on Tuesday. 

On the same occasion, Deputy Finance Minister Anggito Abimanyu also declined to provide detailed information regarding the impact of the tariff policy on state revenues, noting that its implementation has not yet been effective. 

"It's not yet effective, I don't know yet. I haven't commented yet, I haven't received the final results yet," he said. 

However, he confirmed that the negotiation process will continue. 

"I think yes (negotiations will continue)," said Anggito. 

Separately, Coordinating Minister for Economic Affairs Airlangga Hartarto is scheduled to depart for Washington, D.C., USA, on Tuesday (July 8th) to continue trade tariff negotiations with the US government. 

"Following the United States government's statement regarding the latest import tariff policy for Indonesia, Coordinating Minister for Economic Affairs Airlangga Hartarto continued his trip to Washington, D.C., USA, after previously accompanying President Prabowo Subianto to Brazil," said Coordinating Ministry for Economic Affairs Spokesperson Haryo Limanseto when contacted in Jakarta on Tuesday. 

According to Haryo, the Indonesian government still sees room for negotiation. 

"The Indonesian government will optimize available opportunities to safeguard national interests going forward," he said. 

In an official letter with White House letterhead dated July 7, 2025, addressed to Indonesian President Prabowo Subianto, President Trump stated that the 32 percent tariff would remain in effect on all Indonesian products, separate from other sectoral tariffs. “Please understand that this 32 percent figure is far less than what is necessary to eliminate the Trade Deficit disparity with your country,” Trump wrote in a letter he posted publicly on social media. 

Trump also warned that if Indonesia is perceived to retaliate by raising tariffs, he would retaliate by increasing import tariffs by that amount “plus the 32 percent tariff we have imposed.” However, Trump promised that Indonesia would not be subject to tariffs if it “decided to build or manufacture its products in the United States,” while guaranteeing that its application would be processed and approved within weeks. He also stated that the tariff rate could still change if Indonesia agreed to adjust its trade policies and create a more open national market ecosystem to the US.

---

Tag: Airlangga Hartarto Indonesian Finance Minister Sri Mulyani Indrawati