Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, disclosed that President Prabowo Subianto played a direct role in negotiating the trade tariff revisions following U.S. President Donald Trump’s “Liberation Day” announcement on April 2, 2025. Airlangga, who leads Indonesia’s inter-ministerial negotiation team, mentioned that President Prabowo promptly responded to Trump’s declaration by instructing the team to send a formal letter to the White House. This response from Indonesia was the first among all countries to officially communicate with Washington, D.C.
During a video interview on Real Talk with Uni Lubis, Airlangga explained how President Prabowo was actively involved in formulating a tailored trade package, or “menu”, to be presented specifically to the United States. This menu incorporated President Trump’s expectations and aligned with existing trade discussions within the OECD and the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). The aim was to address the U.S. trade deficit with Indonesia, estimated at around USD 16-17 billion, but claimed by the U.S. to be USD 19 billion. President Prabowo chose to respond to the higher figure by addressing the full USD 19 billion in commercial terms.
The negotiations resulted in Indonesia reducing its export tariffs to the U.S. from 32% to 19%, a decision driven by the compliance standards met in the proposed trade documentation and package. Airlangga shared that he personally met with U.S. Trade Representative Jamieson Greer and engaged in virtual meetings with other U.S. officials. Indonesia’s compliance and timely submission of required documents before the April 9 deadline positioned the country favorably in the negotiations.
The pivotal moment in finalizing the deal came through a phone conversation between Presidents Prabowo and Trump, as confirmed by Airlangga. A clip of this call, shared by President Prabowo on Instagram, highlighted the discussion that led to both sides considering the negotiation resolved. Ultimately, the decision to reduce tariffs to 19% was made during this phone call between the two presidents, marking the conclusion of the trade negotiations.
