Indonesia has taken a diplomatic approach to address the recent 32% trade tariff imposed by US President Donald Trump, with officials indicating a strong preference for negotiation over retaliation. Chief Economic Minister Airlangga Hartarto announced on Sunday that the government would not engage in retaliatory measures but instead seek mutually beneficial solutions through dialogues.

Recognizing the significance of maintaining stable economic relations, Minister Hartarto stated that Indonesia aims to preserve the investment climate and national economic stability while ensuring the interests of industries such as apparel and footwear are protected. He indicated plans for deliberations with business leaders to forge strategies addressing the imposed tariffs. Furthermore, President Prabowo Subianto emphasized the importance of an equal relationship with Washington, expressing confidence in Indonesia’s ability to manage potential challenges.

Following this strategic pivot, on April 8, Indonesia announced significant trade concessions to facilitate ongoing negotiations with the US. These concessions include a reduction in import taxes on essential products such as electronics and steel, intended to not only alleviate the impact of the tariffs but also enhance Indonesia's competitiveness in the US market.

The government aims to send a high-level delegation next week to Washington to negotiate and explore opportunities for purchasing American goods, including liquefied petroleum gas and soybeans. These efforts are geared towards diminishing Indonesia's US trade surplus, which stood at US$16.8 billion last year, as reported by the Jakarta Post.

In anticipation of the negotiations, Minister of Finance Sri Mulyani Indrawati explained that the new tax rates on imports from the US would significantly range between 0% and 5%, down from the previous rates of 5% to 10%, showing a clear intention to strengthen bilateral trade relations.

Indonesia remains focused on developing a strategy that aligns its interests with the dynamics of US trade policy while fostering a stable and flourishing economic environment.

For more on Indonesia's response to the US tariffs and diplomatic efforts, check sources like Jakarta Post and South China Morning Post.