Indonesia says it will sign $43 billion pact with US partners ahead of tariff talks deadline
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Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said the MOU is due to be signed on July 7.
PHOTO: REUTERS
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JAKARTA - Indonesia will sign a pact worth US$34 billion (S$43 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 on July 3.
The deal would include increasing imports of fuel and investment by Indonesian companies in energy and agriculture sectors in the US.
Separately, flag carrier Garuda Indonesia also said it is in talks to buy up to 75 jets from Boeing.
Jakarta is facing a 32 per cent tariff in US markets and has previously offered to increase US imports
Indonesia enjoyed a goods trade surplus of US$17.9 billion with the United States 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.
“This shows that government, regulators, state-owned enterprises and the private sector are together in responding to the imposition of US reciprocal tariffs,” Mr Airlangga said.
He 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 on July 2 that it will place a lower-than-promised 20 per cent tariff on many Vietnamese exports
Meanwhile, Garuda’s potential jet purchase may include 737 Max 8 and 787 jets, its chief executive Wamildan Tsani told reporters after meeting Mr Airlangga.
It was unclear whether Garuda’s discussion with Boeing is part of the tariff negotiations.
The airline is struggling to recover from the impact of the pandemic.
It secured a US$405 million loan from sovereign wealth fund Danantara Indonesia in June for maintenance, repair and overhaul of its fleet. REUTERS
