Indonesia says to increase US imports, lower orders from other countries
World
Indonesia also plans to buy agricultural products including wheat from US
JAKARTA (Reuters) - Indonesia will increase imports of US food and commodities and reduce orders from countries where the Southeast Asian nation currently buys the products, chief economic minister Airlangga Hartarto told reporters in Washington.
Airlangga is in the United States as part of a delegation of senior officials to meet US counterparts for talks on a 32% tariff on Indonesian exports, which has been paused for 90 days.
Indonesia has proposed increasing its imports from the US by as much as $19 billion, including around $10 billion of energy imports, to eliminate its trade surplus with Washington and avoid the tariffs threatened by the administration of President Donald Trump.
"Indonesia also plans to buy agricultural products including wheat, soybeans and soybean meal and increase purchases of capital goods from the US," Airlangga said at the press conference broadcast on video conference platform Zoom.
“We will support the government's decision, as long as market prices and competitiveness are aligned,” Ratna Sari Lopis, executive director of the Indonesian Wheat Flour Producers Association told Reuters.
According to data from the association, Australia provided 40% of Indonesia's wheat imports in 2024, with 26% from Ukraine and 16% from Canada. U.S. imports stood at just below 4%.
In contrast, Indonesia imported nearly 89% of its soybean from the US in 2024.
"We will also facilitate American companies that have been operating in Indonesia, related to permits and incentives," he added.
Indonesia will also work on critical minerals and simplify procedures related to American horticultural products imports.
After a meeting with the US Trade Representative and the secretary of commerce, the two countries agreed to complete negotiations within the next 60 days.
