U.S. Government Shutdown Halts Indonesia–U.S. Tariff Negotiations, Says Minister Airlangga Hartarto
Jakarta, The Gulf Observer: Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the ongoing government shutdown in the United States has disrupted tariff negotiations between Indonesia and the U.S.
“We felt the impact of the U.S. government shutdown, as it brought our negotiations to a halt,” Hartarto stated during a press conference on Tuesday.
He explained that the talks, which were being conducted via video conference, have been suspended due to the shutdown. Indonesia, he said, will seek clarification from the Office of the U.S. Trade Representative (USTR) on the continuity of the discussions.
While awaiting further communication from Washington, the minister assured that Indonesia continues to closely monitor developments related to the shutdown and its potential economic implications.
Hartarto also noted that Indonesia is seeking a waiver to exempt key export commodities—such as palm oil, rubber, and cocoa—from the 19 percent import tariff introduced under former U.S. President Donald Trump.
“The negotiations have entered the legal scrubbing phase to ensure that the final agreement complies with both countries’ regulations. The outcome will be more detailed than what we previously announced,” he added.
The United States federal government entered a partial shutdown after Republicans and Democrats failed to reach a temporary funding agreement before the midnight deadline. Although the 2024 fiscal year concluded on September 30, Congress has yet to finalize a budget for the new fiscal year.
The political deadlock in the Senate—where Republicans lack the votes required to pass funding legislation—has left 1.3 million active-duty troops and 50,000 Coast Guard personnel without pay, disrupted food assistance for low-income families, and impacted over 13,000 air traffic controllers, raising concerns about flight delays and cancellations.
According to the Congressional Budget Office, approximately 750,000 federal employees could be furloughed daily, with the shutdown’s estimated economic toll reaching $400 million per day.
Efforts to end the impasse remain stalled after the U.S. Senate failed on Monday to pass a Republican-sponsored bill aimed at restoring government funding.
