Indonesia to boost purchases from US ahead of tariff deadline

Indonesia to boost purchases from US ahead of tariff deadline

Jakarta will sign a pact worth US$34 billion as part of efforts to strike a trade deal with Washington.

Indonesia’s chief economic minister Airlangga Hartarto said the memorandum of understanding will be signed on Monday. (EPA Images pic)
JAKARTA:
Indonesia will sign a pact worth US$34 billion with business partners next week to boost purchases from the US, as part of efforts to strike a trade deal with Washington ahead of the July 9 deadline, Indonesia’s chief economic minister said today.

Jakarta is facing a 32% tariff in US markets and has previously offered to increase US imports to facilitate trade talks between the two sides.

Indonesia enjoyed a goods trade surplus of US$17.9 billion with the US in 2024, according to the US trade representative.

Speaking to journalists, minister Airlangga Hartarto said the memorandum of understanding due to be signed on July 7 will deploy the US$34 billion for new Indonesian investments and purchases in the US.

Airlangga said that by addressing the trade balance with the US, Indonesia hoped to get a better trade deal than the one struck with Vietnam.

The US announced yesterday that it will place a lower-than-promised 20% tariff on many Vietnamese exports, down from the original 46% announced by president Donald Trump in April.

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