Indonesia and U.S. Accelerate Three-Week Talks on 32% Import Tariff, Nickel Reserves, and Trump’s Investment Condition Ahead of August 1 Enforcement

Indonesia and the United States are engaged in intensive negotiations to address a 32 percent U.S. import tariff on Indonesian exports, with talks expected to continue over the next three weeks. The Indonesian Economic Ministry highlighted that discussions encompass tariffs, non-tariff barriers, the digital economy, and commercial partnerships. Indonesia aims to expand its export markets during the negotiation period. U.S. President Donald Trump indicated that the tariff could be reduced or eliminated if Indonesian companies invest directly in the U.S. by establishing manufacturing facilities. Indonesia is also seeking closer cooperation with the U.S. to process its substantial reserves of nickel, copper, and cobalt, with Jakarta projected to control three-quarters of the global refined nickel supply by the end of the decade. The current tariff is seen as a challenge to the competitiveness of Indonesian products in the U.S. market. Both governments have agreed to accelerate the tariff negotiation process ahead of the tariff's scheduled enforcement on August 1, 2025.