Indonesia and Malaysia are making moves to negotiate with Washington, promising to correct trade imbalances and reduce non-tariff barriers in an effort to de-escalate the escalating trade tensions and avoid higher tariffs on key exports.
Delegations from both countries have had senior level discussions with US officials to find some solutions to concerns over possible high tariffs, which could potentially obstruct the flow of trade between both countries and the US.
The two South-east Asian countries are now going to enter into technical discussions with the US in hopes of finding some compromises.
Indonesia’s Coordinating Economic Minister Airlangga Hartarto, who is leading the delegation with Finance Minister Sri Mulyani Indrawati, said that the country is confident it can defend its national interests while engaging in high-stakes tariff negotiations with the US.
In a press conference late on April 24, Airlangga – who has been in Washington since April 16 – reported that the delegation has met with important US officials including Treasury Scott Bessent, and meets with executives from major sector firms including semiconductors and the aircraft industry.
“During the negotiation process, Indonesia is committed to prioritising its national interests while fostering stronger bilateral ties with the US,” said Airlangga. “Indonesia has also signed a non-disclosure agreement with the US Trade Representative, marking the official beginning of the negotiation phase.”