Southeast Asia’s largest economy Indonesia, is facing a 32% tariff imposed by the US from Aug 1, highlighting its strategic importance in global trade to lower it.

Chief negotiator and economic minister Airlangga Hartarto told Reuters that he met with commerce secretary Howard Lutnick and US trade representative Jamieson Greer in Washington yesterday.

Airlangga’s ministry said today that the talk covered tariffs, non-tariff barriers and commercial partnerships, adding that both countries will intensify talks over the next three weeks.

“We already have a similar understanding with the US regarding the talks. In the future, we will make an effort to wrap up these negotiations on the principle of mutual benefit,” Airlangga said in the statement.

Indonesia and the US are eyeing a wider partnership in the former’s critical minerals sector, with Airlangga’s ministry citing the country’s large reserves of nickel, copper and cobalt.

G20 economy Indonesia is a major producer of metals such as nickel, tin and copper, and is also the world’s biggest exporter of palm oil.

In the tariff talks, Indonesia has proposed slashing its duties on American products to near zero and offered to increase US purchases and investment in the country, amounting to a value of about US$34 billion.

Several Indonesian companies have recently signed initial deals with US counterparts to increase purchases of energy supplies, wheat, corn and cotton, among others.