Indonesia scraps plan to send delegation to US for tariff talks; Prabowo and Trump hold phone meeting

JAKARTA (Bloomberg): Indonesia will no longer send a delegation to the US for tariff negotiations as its proposal to Washington has already been deemed sufficient, according to the senior minister who's leading the talks.
It's a change from the delegation's previous plans to head to Washington this week for a second round of negotiations, as the South-East Asian nation works to bring down a planned 32% tariff on its exports to the US.
The progress also comes just hours after Indonesian President Prabowo Subianto and US President Donald Trump held a nearly 15-minute phone call to talk about strengthening ties between the two countries.
Indonesia has submitted all necessary documents and will now just await the decision from Washington, Coordinating Economic Minister Airlangga Hartarto said in a briefing on Friday.
The US Trade Representative told Indonesian officials in a meeting on Thursday that their documentation was considered complete, Hartarto separately told reporters on Friday, according to a report by CNN Indonesia.
It highlights the global rush to strike a deal with the US as the 90-day pause on reciprocal tariffs is set to end on July 9.
South-East Asia has been one of the hardest-hit regions, with higher-than-expected levies seen to undermine their export and manufacturing sectors that have been crucial to driving economic growth.
Vietnamese officials are in the US for a third round of official negotiations, while Malaysia's delegation is headed for Washington next week. Thailand is expecting to conduct talks virtually but is waiting for an exact date.
Likely bolstering Indonesia's confidence in the negotiations is a call between Trump and Prabowo late Thursday.
The leaders gave updates on recent developments in their countries and agreed to continue boosting cooperation, Indonesia's cabinet secretariat said in an Instagram post on Friday. They also reaffirmed their support for efforts to maintain global stability and peace, it said.
As part of the trade negotiations, Indonesia will offer a list of preferential tariffs on some US goods, Hartarto said last week. It could also import more US fuel, lower local content requirements and increase access to its critical minerals, the minister had said earlier.
State-run oil giant PT Pertamina will shift some of its crude imports from other countries to the US, President Director Simon Aloysius Mantiri said in a separate briefing on Friday. The company is calculating prices, shipping times and volumes of imports, including for LPG, to increase transactions with the US, he said.
--With assistance from Grace Sihombing and Eko Listiyorini. -- ©2025 Bloomberg L.P.

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