Indonesia is set to increase its imports of U.S. food and commodities while scaling back orders from its current suppliers, as part of efforts to address a looming trade dispute with the United States, according to chief economic minister Airlangga Hartarto. Speaking in Washington, Hartarto revealed that the Southeast Asian nation plans to significantly boost its imports from the U.S., including energy, agricultural products, and capital goods.
Indonesia’s proposal involves increasing its U.S. imports by up to $19 billion, with a focus on $10 billion worth of energy products. This move is aimed at eliminating the trade surplus with the U.S. and mitigating the threat of a 32% tariff on Indonesian exports, which was recently suspended for 90 days.
In a press briefing broadcast via Zoom, Hartarto outlined Indonesia’s plan to purchase a variety of U.S. agricultural products, including wheat, soybeans, and soybean meal. Additionally, the country intends to boost its acquisitions of capital goods from the U.S. and collaborate on critical minerals. The government will also work to streamline procedures for the import of American horticultural products.
Hartarto emphasized Indonesia’s commitment to facilitating American companies already operating in the country, particularly in terms of permits and incentives.
Following productive discussions with U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo, the two nations agreed to finalize negotiations within the next 60 days.
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