Indonesia Seeks Trade and Investment Deals with US to Avert Tariffs

Indonesia is sending a high-level delegation to Washington for a week of talks aimed at striking trade, investment, and financial-sector deals, seeking to forestall or mitigate potential tariffs from one of its largest trading partners, Bloomberg reports.

The Indonesian team, led by Coordinating Economic Minister Airlangga Hartarto, plans to propose Indonesian investments in the information technology and oil and gas sectors within the US. Officials said Monday in Jakarta that the delegation intends to close Indonesia’s multibillion-dollar trade gap with the US by increasing purchases of American goods, among other measures.

“There’s tariffs and non-tariffs that will be part of our negotiations,” said Hartarto, describing Indonesia as “among the first nations” to hold such talks in Washington.

The delegation is scheduled to meet with the US Trade Representative, the Treasury Secretary, the Commerce Secretary, and the Secretary of State between April 16-23 to negotiate tariffs.

Southeast Asia’s largest economy is facing the prospect of a 32% levy on goods ranging from palm oil to apparel and footwear, as a result of tariffs planned by US President Donald Trump. Last year, Indonesia had a trade surplus of approximately $18 billion with the US.

Hartarto spoke after officials convened Monday to discuss strategies for reaching more favorable terms with the US, extending beyond trade alone. The government has compiled a list of commodities it could import in greater quantities from the US, as well as investment offers for US companies. Hartarto added that some Indonesian companies are also looking to offer investments in the US as part of the negotiations.

One topic to be discussed includes rules requiring companies in Indonesia to locally source some content of their goods sold domestically, a long-standing point of contention with foreign investors such as Apple Inc. President Prabowo Subianto stated last week that these rules need to be eased to enhance Indonesia’s competitiveness.

The meeting included representatives from the ministries of energy, finance, and state-owned enterprises, alongside investment officials and the country’s Financial Services Regulator.

The delegation to the US will include Finance Minister Sri Mulyani Indrawati, Foreign Minister Sugiono, Deputy Finance Minister Thomas Djiwandono, and Mari Pangestu, a former trade minister and current member of Indonesia’s National Economic Council advisory body.