Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed the direct involvement of President Prabowo Subianto in negotiating trade tariff revisions following U.S. President Donald Trump’s announcement of “Liberation Day”—a proclamation of economic independence on April 2, 2025. President Prabowo reacted promptly to Trump’s declaration, instructing the inter-ministerial negotiation team to send an official letter to the White House. Airlangga emphasized that Indonesia was the first country to respond officially to Washington, D.C.
During a video interview on Real Talk with Uni Lubis, Airlangga discussed how President Prabowo personally reviewed the letter before it was sent to the White House, positioning Indonesia as the first respondent after Trump’s tariff announcement. The negotiation team, inclusive of various ministries and agencies, was already engaged in trade discussions with the OECD and amid the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA).
President Prabowo directed the team to assemble a trade package tailored to the U.S., which he referred to as a “menu,” intertwining Trump’s expectations with existing negotiations in the OECD and IEU-CEPA. Airlangga explained that Indonesia addressed the full USD 19 billion claimed by the U.S. trade deficit, aiming to provide a balanced trade proposition. The successful reduction of Indonesia’s export tariffs to the U.S. from 32% to 19% was attributed to Indonesia’s compliance with all necessary standards.
Airlangga detailed his personal meetings with U.S. Trade Representative Jamieson Greer and other U.S. officials, highlighting Indonesia’s high compliance level. The negotiation process included submitting formal letters before the April 9 deadline, thorough document reviews, and in-person and virtual meetings with U.S. representatives. The crucial turning point in finalizing the agreement was a phone conversation between Presidents Prabowo and Trump, with a snippet of that call shared by President Prabowo on Instagram.
Ultimately, President Prabowo and President Trump declared the negotiation resolved, finalizing the tariff reduction to 19% during their phone call. Airlangga concluded that the decision showcased the strong collaboration between the two leaders, marking a critical milestone in Indonesia’s trade relations with the U.S.
