Testing times: A surfer heads into the water to catch some waves on Lhoknga beach, Aceh. Dozens of countries, including Indonesia, have issued travel advisories citing risks of arbitrary detention and volatile security conditions in Iran. — AFP
JAKARTA: Indonesia is not overly concerned about potential new tariffs announced by United States President Donald Trump targeting countries that trade with Iran, the government says, citing the relatively small size of bilateral trade, as Jakarta focuses on wrapping up a trade deal with Washington.
Trump said in a social media post on Monday that Washington would immediately impose a 25% tariff on all goods and services imported from any country that “does business” with Iran, stepping up pressure on Tehran amid weeks of deadly protests.
“Trade transactions with Iran are not large. Indonesia is not worried and is focused on concluding negotiations with the United States,” Coordinating Economy Ministry spokesman Haryo Limanseto, said on Tuesday.
Jakarta’s negotiation team is currently in Washington, Haryo added, with both sides aiming to conclude the bilateral trade agreement by the end of the month.
An Agreement on Reciprocal Trade is expected to be signed by President Prabowo Subianto and Trump in Washington, subject to the talks proceeding as planned.
Total Indonesia-Iran trade stood at US$206.9mil in 2023, according to the Trade Ministry.
Indonesian exports amounted to US$195.1mil, while imports totalled just US$11.7mil, resulting in a US$183.4mil trade surplus for the archipelago.
Indonesia’s main non-oil and gas exports to Iran included nuts, motorcycles, industrial monocarboxylic fatty acids, fiberboard and vehicle parts.
The key imports included dates, petroleum coke, alkaloids, grapes and medical instruments. Indonesia and Iran also have a preferential trade agreement, signed in 2023, which is aimed at reducing import tariffs on hundreds of tariff lines.
Trump, who has repeatedly threatened Iran with military intervention, said the new levies would “immediately” hit the Islamic republic’s trading partners who also do business with the United States.
“Effective immediately, any country doing business with the Islamic Republic of Iran will pay a tariff of 25% on any and all business being done with the United States of America,” Trump wrote on his Truth Social account.
“This order is final and conclusive,” he wrote, without specifying which countries would be affected.
Iran’s main trading partners include China, Turkiye, the United Arab Emirates and Iraq, according to economic database Trading Economics.
Concerns have mounted globally as protests in Iran, sparked by economic grievances, enter their third week and continue to spread nationwide, with more than 2,000 fatalities reported in recent weeks.
Iranian rights groups and state media have confirmed fatalities among both protesters and security personnel, while Tehran has blamed foreign interference for stoking the unrest and staged nationwide counter-rallies.
Countries around the world have stepped up measures to protect their nationals, with dozens, including Indonesia, issuing travel advisories citing risks of arbitrary detention, volatile security conditions and escalating violence. — The Jakarta Post/ANN
