Indonesia's Strategic Shift Towards U.S. Imports

Indonesia plans to increase its imports of U.S. food, commodities, and energy by up to $19 billion. This shift aims to eliminate Indonesia's trade surplus with Washington and research to ease the 32% tariff on its exports. Discussions with U.S. counterparts are underway to finalize the agreement.

Indonesia is poised to substantially increase its imports from the United States, focusing on food, commodities, and energy, as revealed by the chief economic minister, Airlangga Hartarto, during his visit to Washington.

This strategic move is geared towards eliminating the trade surplus Indonesia holds with the U.S., a factor that has led to a 32% tariff on its exports, currently paused for 90 days. The Southeast Asian nation is aiming to boost its imports by approximately $19 billion, including $10 billion in energy, which could help avoid tariffs previously threatened by the Trump administration.

The bilateral talks, involving Airlangga and top U.S. trade officials, have resulted in an agreement to complete negotiations within the next 60 days. Indonesia also intends to improve procedures for importing American horticultural products and facilitate operations for U.S. businesses in the country.

(With inputs from agencies.)