JAKARTA: Indonesia will offer to step up purchases of aircraft by state carrier Garuda Indonesia and wheat by instant noodle giant Indofood, in tariff talks with the United States, its chief economics minister told Reuters.
Airlangga Hartarto, who is also the Southeast Asian nation’s lead negotiator, said the government has also offered near-zero tariffs on key American exports, including agriculture products, which he said pay tariffs of between 0 per cent and 5 per cent.
Jakarta is facing a 32 per cent tariff in US markets. It previously said it would sign a US$34 billion pact with US partners next week, which includes commitments to buy more US goods as well as investment by Indonesian companies in the United States.
“It will be near zero (tariffs for US main exports), but it will depend as well on how much the tariffs we get from US,” Airlangga said.
Garuda’s CEO has said it is in discussions with US Boeing to buy up to 75 units of aircraft. Garuda and Indofood group did not immediately respond to requests for comment.
The US goods trade deficit with Indonesia was US$17.9 billion in 2024, according to the US Trade Representative. US exports to Indonesia include soybeans, petroleum gases and aircraft, Indonesian government data showed.
When asked whether the trade talks include military deals, Airlangga said they were “not part of the negotiation”.
Susiwijono Moegiarso, a senior official with Indonesia’s Coordinating Ministry for Economic Affairs, told Reuters that in return, Jakarta has asked the United States for preferential tariffs on its main exports, including electronics, textiles and footwear.
“We want them to lower the tariffs (for those goods) as low as possible,” he added.
Indonesia has also offered the United States opportunities to invest in critical minerals projects, including in its abundant resources of copper, nickel and bauxite.
Read the full article here
