https://www.scmp.com/week-asia/economics/ar...ts-us19-billion

In move to avert Trump’s tariff, Indonesia to raise US imports by up to US$19 billion

Indonesia pledges to buy more US energy and agricultural products, and unveil other trade concessions amid a looming 32 per cent tariff
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Indonesia’s Chief Economic Minister Airlangga Hartarto says Jakarta will help US companies with operations in the country regarding permits and incentives. Photo: AFP
Amy Sood
Published: 7:00pm, 18 Apr 2025
Indonesia has pledged to increase its imports from the United States by up to US$19 billion, including US$10 billion in energy purchases and make other trade concessions, as part of a broader strategy to stave off looming tariffs from Washington.

Chief Economic Minister Airlangga Hartarto outlined the plan to reporters on Friday morning, following high-level bilateral trade talks in Washington, where he and other senior Indonesian officials met their US counterparts.

He said the proposed imports would include agricultural products such as wheat, soybeans and soybean meal, along with capital goods intended for industrial rather than consumer use.

Indonesia will also work on enhancing investments in its critical minerals sector and simplifying procedures related to the imports of American horticultural products.

“We will also facilitate American companies that have been operating in Indonesia, related to permits and incentives,” Airlangga said.
The announcement comes after Indonesia’s President Prabowo Subianto said last week that his government would reform restrictive import quotas and local content requirements – a move aimed at addressing the 32 per cent tariff imposed on Indonesian exports to the US announced by President Donald Trump earlier this month. The tariff has been suspended for 90 days until July.

After the Indonesian delegation’s meeting with the US Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick on Thursday, Jakarta and Washington agreed to complete their trade negotiations within the next 60 days.

Can Indonesia afford concessions?

On Wednesday, Indonesia’s Foreign Minister Sugiono met with his American counterpart Marco Rubio to primarily discuss strengthening economic ties. Their conversation also largely revolved around tariffs, with Sugiono saying Indonesia was making efforts to deregulate by simplifying existing import rules to facilitate foreign investment.

Sugiono “pushed for the strengthening of the US-Indonesia economic partnership”, particularly in supply chain cooperation, Indonesia’s foreign ministry said in a statement on Thursday.

He also invited US investors to explore Indonesia’s critical minerals sector such as nickel, alongside other key industries, to enhance bilateral economic collaboration.

A statement from Washington after the meeting said Rubio “welcomed Indonesia’s efforts to introduce economic reforms toward a fair and balanced trade relationship”.

Jakarta-based economist Krisna Gupta, a senior fellow at the Centre for Indonesian Policy Studies (CIPS), told This Week in Asia that Indonesia’s pledge to raise its US imports up to US$19 billion – including agricultural products – was “steep”.

While this might crowd out imports from some of Indonesia’s current trading partners, Jakarta’s historically tight control over agricultural products would make the trade reconfiguration feasible, Krisna said. In the long run, this could benefit Indonesian consumers and manufacturers through lower costs and improved access, he added.

Analysts say that Indonesia’s push to offer trade concessions and ease non-tariff barriers aims to preserve its competitiveness and mitigate the impact of US tariffs on local industries.

The tariffs pose a “significant and concerning” challenge, particularly for labour-intensive sectors like apparel, clothing, and footwear, which comprised nearly 30 per cent of Indonesia’s exports in 2024, according to Dandy Rafitrandi, an economic researcher at CSIS Indonesia.

“Given the current challenges in the industry, including the trend of lay-offs and other issues, [the tariffs could] pose serious problems for Indonesia,” he said.

Last week, Prabowo expressed confidence in Indonesia’s ability to fulfil its import commitments and trade concessions with the US, emphasising that as Southeast Asia’s largest economy, “it is not a poor country.”

Krisna said it was commendable for the Indonesian government to swiftly send envoys to the US and secure a commitment to finalise a deal within 60 days. However, he cautioned that Trump’s “impulsive” approach to policy meant Jakarta had to remain vigilant.

“I hope both parties can honour an agreement like that,” he said.

Additional reporting by Reuters

lol first one in Asia to kowtow.

Another one bites the dust

The amount is way too small for US appetite, what trump want is much bigger than this

It is funny that Indonesia bullied Apple said need to invest 1B USD or build apple parts in Indonesia last year … now US comes back to take the money back …

Karma?

So fast capitulate. They suppose to nego as 1 ASEAN block. Now Indo pancut awal, habislah asean.

Too little la

But we poor nation, where got money buy...

good job zafrul n anwar allow elon tesla and starling coming here last year.

Hey, did you get PMX permission as ASEAN Chair?

Indonesia is doing the right thing n

wow indogs also kecut bola dy.. no wonder call indogs

lol

bodolah kalau pay the extortion fees. later wan 20 bil lagi and lagi. since when u see bully only take your lunch money once

Should send their bola sepak fans to trespass US embassy to protest

Really jilat kaw kaw Trump ass plus open big big give US companies rape their rare earth tim

Macam bukan Indonesia yang we know

vietnam panic then couldnt get good deal ?
then now indon ?
should just join with PMX as Asean... one bloc

Is either import us products or ccp products.

You choose

SEA countries are a neighborhood of sore grumpy old uncles that don't talk to each other

extortionist will always come back for more