The US has imposed a 32% tariff on imports from Indonesia. This move is part of a broader trade strategy to address imbalances and boost US manufacturing.

The White House said that the tariff was influenced by Indonesia’s economic policies, which are viewed as unfavorable to US businesses. One example is Indonesia’s 30% import tariff on US ethanol, compared to the US’s 2.5% tariff on Indonesian ethanol.

The US also raised concerns about Indonesia’s local content requirements (TKDN), calling them non-tariff trade barriers.

Indonesia’s complex import licensing regime and new regulation on foreign exchange from export revenues (DHE) further complicate trade.

Under Government Regulation No. 8/2025, exporters must retain 100% of their earnings from natural resources in local banks for one year.