Indonesia Opts for Diplomacy Over Retaliation Against U.S. Tariff

Indonesia has decided not to retaliate against the 32% trade tariff imposed by the U.S., as announced by Chief Economic Minister Airlangga Hartarto. Instead, the country will pursue diplomatic negotiations aiming for a mutually beneficial outcome and explore alternative trade options with European countries.

Indonesia will forgo immediate retaliation against U.S. President Donald Trump's 32% trade tariff imposed on Southeast Asia's largest economy. This was the government's maiden response to the levy, disclosed by Senior Economic Minister Airlangga Hartarto on Sunday.

Minister Hartarto emphasized a diplomatic approach, favoring negotiations to foster mutually beneficial solutions following Trump's Wednesday announcement of global tariffs. "We prioritize the long-term interest of our bilateral trade relation and the need to preserve investment climate and stability," Hartarto noted, pledging support for impacted sectors like apparel and footwear.

The impending tariff on Indonesia, part of a broader impact across Southeast Asian nations, is slated for enforcement on Wednesday. To counter this, Jakarta plans to convene with business leaders, drawing strategies to address the U.S. tariff and augment trade with Europe, deeming it a viable alternative to the U.S. and China.

(With inputs from agencies.)