Indonesia to sign $34 bln pact with U.S. partners ahead of tariff negotiation deadline, minister says

JAKARTA: Indonesia will sign a pact worth $34 billion with business partners next week to boost purchases from the United States, as part of efforts to strike a trade deal with Washington ahead of the July 9 deadline, Indonesia's chief economic minister said on Thursday.

Jakarta is facing a 32% tariff in U.S. markets and has previously offered to increase U.S. imports to facilitate trade talks between the two sides.

Indonesia enjoyed a goods trade surplus of $17.9 billion with the United States in 2024, according to the U.S. Trade Representative.

Speaking to journalists, Minister Airlangga Hartarto said the memorandum of understanding due to be signed on July 7 will deploy the $34 billion for new Indonesian investments and purchases in the United States.

Airlangga said that by addressing the trade balance with the United States, Indonesia hoped to get a better trade deal than the one struck with Vietnam.

The United States announced on Wednesday that it will place a lower-than-promised 20% tariff on many Vietnamese exports, down from the original 46% announced by President Donald Trump in April.