JAKARTA, July 3 — Indonesia will sign a pact worth US$34 billion (RM143.5 billion) with business partners next week to boost purchases from the United States (US), as part of efforts to strike a trade deal with Washington ahead of the July 9 deadline.
Its Coordinating Minister for Economic Affairs Airlangga Hartarto said that the deal would include increasing imports of fuels and investment by Indonesian companies in the energy and agriculture sectors in the US. Separately, flag carrier Garuda Indonesia also stated that it is in talks to purchase 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 to facilitate trade talks between the two sides.
Indonesia enjoyed a goods trade surplus of US$17.9 billion (RM75.59 billion) with the US in 2024, according to the US Trade Representative.
Speaking to the press today, 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," he said.
Hartarto added that by addressing the trade balance with the US, Indonesia hoped to get a better trade deal than the one struck with Vietnam.
On Wednesday, the US announced that it will place a lower-than-promised 20 per cent tariff on many Vietnamese exports, down from the original 46 per cent announced by President Donald Trump in April.
Meanwhile, following his meeting with the minister, Garuda's chief executive Wamildan Tsani told the press that the airline's potential jet purchase may include 737 Max 8 and 787 jets.
It was unclear whether Garuda's discussion with Boeing was part of the tariff negotiations.
The airline is struggling to recover from the Covid-19 pandemic's impact. It secured a US$405 million (RM1.71 billion) loan from sovereign wealth fund Danantara Indonesia in June for the maintenance, repair, and overhaul of its fleet.
— Reuters
