Latest news with #Hartarto
Economic Times
04-07-2025
- Business
- Economic Times
Trade pact: Jakarta's $34 billion play to secure tariff deal with US
The US and Indonesia will sign trade and investment pacts worth $34 billion as part of Jakarta's efforts to secure a tariff deal ahead of a July 9 deadline. Indonesia plans to invest in the US and purchase American agricultural goods and $15.5 billion of energy products under a memorandum of understanding to be signed on July 7, Coordinating Economic Minister Airlangga Hartarto told reporters in Jakarta on Thursday. While the MoU is part of Indonesia's negotiations to secure lower US tariffs, it doesn't represent a final agreement, Hartarto said. "We have to see later the final announcement by our US counterparts," he added when asked about a tariff rate deal. The planned MoU involves Danantara, a new sovereign wealth fund under President Prabowo Subianto that manages Indonesia's state-owned enterprises, and private entities including flag-carrier Garuda Indonesia, instant noodle maker Indofood CBP Sukses Makmur and a local feed mills association, he said. Hartarto, who is leading Indonesia's efforts to reduce Washington's planned 32% tariffs on Indonesian imports, said Southeast Asia's largest economy aims to secure more favorable terms than neighboring Vietnam. Hanoi, which had a $123.5 billion trade surplus with the US last year, struck a deal late Wednesday for a tariff rate of 20%, down from a proposed 46%. Southeast Asian nations, among the hardest hit by US President Donald Trump's planned tariffs, have been racing to seal trade deals with Washington before the July 9 cutoff to avoid increased has already eased or eliminated some import restrictions as part of a bid to shrink its $18 billion trade surplus with the US. Jakarta has also pledged to remove non-tariff barriers and boost imports of US products, potentially including oil, liquefied petroleum gas and also said the US has no concerns about transshipment involving Indonesia and hadn't broached the topic in trade discussions, unlike in Vietnam.
Bangkok Post
04-07-2025
- Business
- Bangkok Post
Indonesia sees ‘bold' US trade deal, vows major tariff cuts
Indonesia is confident it is close to securing a 'bold' trade deal with the United States that will span critical minerals, energy, defence cooperation and market access ahead of the looming tariff deadline, according to the nation's chief negotiator. The government commits to a near-zero tariff for over 1,700 commodities or close to 70% of US imports, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement sent to Bloomberg News on Friday. These cover key sectors requested by the US, including electronics, machinery, chemicals, healthcare, steel, agriculture and automotive. The sweeping deal could signal optimism as Southeast Asia's largest economy seeks to bring down a threatened 32% tariff rate to a level lower than the 20% Vietnam secured earlier this week. The US is Indonesia's second-largest export market, after China. Still, Hartarto said the government remains in 'wait-and-see' mode for a final decision from Washington before the higher tariffs come into force on Wednesday. The rupiah held steady at 16,180 against the US dollar following the news while the stocks maintained earlier loss of 0.2%. 'The market will look at the full picture to gauge the actual impact on Indonesia exports sector, as we need to compare the final US tariffs on different economies to know the change in competitiveness of export,' said Jeffrey Zhang, emerging market strategist at Credit Agricole in Hong Kong. In the sector of critical minerals, 'plans include preferential access for US buyers, enhanced scrutiny of foreign ownership in the supply chain, and joint initiatives to ensure secure, transparent sourcing for key US industries,' Hartarto said. The measures may make it easier for US firms to avoid buying from China-backed metals firms based in Indonesia, which is home to the world's largest reserves of nickel, a key component of batteries. Indonesia will also ramp up its imports of US gas and agricultural goods, in a bid to boost the nation's food and energy security. State-owned airline PT Garuda Indonesia is also exploring commercial cooperation, which could include new aircraft purchases and maintenance services. Meanwhile, the government plans to expand its procurement of US military equipment, 'reinforcing its position as a reliable defence partner in the Indo-Pacific.' Indonesia pledged 'fairer treatment' for American firms by relaxing local content requirements, bolstering intellectual property protection, and opening the national payment gateway to US providers — key issues the US Trade Representative has regularly flagged in its yearly reports. 'The message is clear: Indonesia is pursuing a balanced, forward-looking economic relationship that yields tangible benefits for businesses and workers across both shores of the Pacific,' Hartarto said.
Time of India
03-07-2025
- Business
- Time of India
Trade pact: Jakarta's $34 billion play to secure tariff deal with US
The US and Indonesia will sign trade and investment pacts worth $34 billion as part of Jakarta's efforts to secure a tariff deal ahead of a July 9 deadline. Indonesia plans to invest in the US and purchase American agricultural goods and $15.5 billion of energy products under a memorandum of understanding to be signed on July 7, Coordinating Economic Minister Airlangga Hartarto told reporters in Jakarta on Thursday. While the MoU is part of Indonesia's negotiations to secure lower US tariffs , it doesn't represent a final agreement, Hartarto said. "We have to see later the final announcement by our US counterparts," he added when asked about a tariff rate deal. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas In Dubai | Search Ads Get Rates Undo The planned MoU involves Danantara, a new sovereign wealth fund under President Prabowo Subianto that manages Indonesia's state-owned enterprises, and private entities including flag-carrier Garuda Indonesia , instant noodle maker Indofood CBP Sukses Makmur and a local feed mills association, he said. Hartarto, who is leading Indonesia's efforts to reduce Washington's planned 32% tariffs on Indonesian imports, said Southeast Asia's largest economy aims to secure more favorable terms than neighboring Vietnam. Hanoi, which had a $123.5 billion trade surplus with the US last year, struck a deal late Wednesday for a tariff rate of 20%, down from a proposed 46%. Live Events Southeast Asian nations, among the hardest hit by US President Donald Trump's planned tariffs, have been racing to seal trade deals with Washington before the July 9 cutoff to avoid increased rates. Indonesia has already eased or eliminated some import restrictions as part of a bid to shrink its $18 billion trade surplus with the US. Jakarta has also pledged to remove non-tariff barriers and boost imports of US products, potentially including oil, liquefied petroleum gas and soybeans. Hartarto also said the US has no concerns about transshipment involving Indonesia and hadn't broached the topic in trade discussions, unlike in Vietnam.
Business Times
30-06-2025
- Business
- Business Times
Indonesia eases import rules ahead of US tariff deadline
[JAKARTA] Indonesia has eased import restrictions on a range of commodities, including raw materials, officials said, presenting the move as a strategic response to ongoing trade negotiations with the US. Trade Minister Budi Santoso said on Monday (Jun 30) that the government plans to ease import restrictions on 10 commodities, including forestry products, plastics, fuels and fertilisers, as part of a broader push to cut through the red tape and give businesses a clearer path forward by scrapping overlapping regulations. Coordinating Minister for Economic Affairs Airlangga Hartarto said the recent move to cut import regulations is part of a broader deregulation effort in response to ongoing global trade agreements, including negotiations with the US. Hartarto added that Indonesia is currently undergoing the procedural steps required to join the Organisation for Economic Co-operation and Development, a move that underscores the country's commitment to reform as improving the ease of doing business remains one of the core criteria for membership. 'In line with President Prabowo Subianto's directive to navigate global trade uncertainty and growing competition, the government is committed to streamlining regulations for businesses and fostering a more supportive ecosystem,' Hartarto said in a press conference. 'Labour-intensive sectors will remain a key focus in efforts to attract investment.' The easing of import requirements and restrictions will be a breath of fresh air for industry players who have long been calling for a smoother path to bring in raw materials, Indonesia's Deputy Industry Minister Faisol Reza said at a press conference. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Indonesia was previously hit with a 32 per cent tariff hike under US President Donald Trump. In the months since, both countries have worked to rebuild momentum through ongoing negotiations, including a high-level visit by Indonesian officials to Washington in April. The United States Trade Representative previously flagged Indonesia's complex import regulations as a non-tariff barrier, citing how the rules hinder the entry of capital goods into the country. In 2024, the US posted a trade deficit of US$17.9 billion with Indonesia, underscoring the significant imbalance in bilateral trade between the two countries. Ahead of the negotiation deadline on Jul 9, Hartarto said Indonesia has agreed to the requests made by the US including those related to tariffs and other trade barriers. He said last week that he held a virtual meeting with US Secretary of the Treasury Scott Bessent, who confirmed that the US is not seeking any new proposals. Hartarto indicated that the negotiation package submitted by Indonesia is sufficient to represent the US government's interests.
The Star
13-06-2025
- Business
- The Star
Indonesia scraps plan to send delegation to US for tariff talks; Prabowo and Trump hold phone meeting
JAKARTA (Bloomberg): Indonesia will no longer send a delegation to the US for tariff negotiations as its proposal to Washington has already been deemed sufficient, according to the senior minister who's leading the talks. It's a change from the delegation's previous plans to head to Washington this week for a second round of negotiations, as the South-East Asian nation works to bring down a planned 32% tariff on its exports to the US. The progress also comes just hours after Indonesian President Prabowo Subianto and US President Donald Trump held a nearly 15-minute phone call to talk about strengthening ties between the two countries. Indonesia has submitted all necessary documents and will now just await the decision from Washington, Coordinating Economic Minister Airlangga Hartarto said in a briefing on Friday. The US Trade Representative told Indonesian officials in a meeting on Thursday that their documentation was considered complete, Hartarto separately told reporters on Friday, according to a report by CNN Indonesia. It highlights the global rush to strike a deal with the US as the 90-day pause on reciprocal tariffs is set to end on July 9. South-East Asia has been one of the hardest-hit regions, with higher-than-expected levies seen to undermine their export and manufacturing sectors that have been crucial to driving economic growth. Vietnamese officials are in the US for a third round of official negotiations, while Malaysia's delegation is headed for Washington next week. Thailand is expecting to conduct talks virtually but is waiting for an exact date. Likely bolstering Indonesia's confidence in the negotiations is a call between Trump and Prabowo late Thursday. The leaders gave updates on recent developments in their countries and agreed to continue boosting cooperation, Indonesia's cabinet secretariat said in an Instagram post on Friday. They also reaffirmed their support for efforts to maintain global stability and peace, it said. As part of the trade negotiations, Indonesia will offer a list of preferential tariffs on some US goods, Hartarto said last week. It could also import more US fuel, lower local content requirements and increase access to its critical minerals, the minister had said earlier. State-run oil giant PT Pertamina will shift some of its crude imports from other countries to the US, President Director Simon Aloysius Mantiri said in a separate briefing on Friday. The company is calculating prices, shipping times and volumes of imports, including for LPG, to increase transactions with the US, he said. --With assistance from Grace Sihombing and Eko Listiyorini. -- ©2025 Bloomberg L.P.
