Latest news with #Indofood
The Star
07-07-2025
- Business
- The Star
Indonesia's top negotiator to visit US ahead of tariff deadline: Official
JAKARTA: Indonesia's senior economic minister Airlangga Hartarto (pic), the country's main negotiator in US. tariff talks, is scheduled to go to the United States on Monday (July 7), an official told Reuters. Airlangga is currently in Brazil accompanying President Prabowo Subianto for the Brics conference, but is scheduled to go to the United States afterwards to oversee tariff negotiations ahead of the July 9 deadline, said Haryo Limanseto, spokesperson at the coordinating ministry for economic affairs. The largest economy in South-East Asia is facing a 32% tariff in US markets and Jakarta has offered to cut duties to near-zero on US main goods. To smoothe tariff talks, it has also proposed US investment in its critical minerals and offered to import more US products. A US$34 billion trade deal between Indonesian companies - including state carrier Garuda and noodle making giant Indofood - and US partners was expected to be signed on Monday, but the exact time has not yet been disclosed, Indofood director Franciscus Welirang told Reuters on Monday. Indofood together with other members of Indonesia's wheat flour mills association have agreed to buy two million tonnes of US wheat worth $500 million. The United States is Indonesia's second largest export market after China, with a total value of $28.1 billion in goods shipped to the United States in 2024, according to US. Trade Representative. The South-East Asian country ran a $17.9 billion goods trade surplus with the United States last year. US tariffs could reduce Indonesia's potential growth by 0.3 to 0.5 percentage points, Finance Minister Sri Mulyani Indrawati has warned. The government has adjusted Indonesia's 2025's GDP outlook downwards to a range of between 4.7% and 5.0%, compared to an earlier target of 5.2%. - Reuters
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.
Business Times
04-07-2025
- Business
- Business Times
Indonesia offers to buy US aircraft, wheat in tariff negotiations
[JAKARTA] Indonesia will offer to step up purchases of aircraft by state carrier Garuda Indonesia and wheat by instant noodle giant Indofood, in tariff talks with the US, its chief economics minister told Reuters. Airlangga Hartarto, who is also the nation's lead negotiator, said the government has also offered near-zero tariffs on key American exports, including agriculture products, which he said pay tariffs of between 0 per cent and 5 per cent. Jakarta is facing a 32 per cent tariff in US markets. It previously said it would sign a US$34 billion pact with US partners next week, which includes commitments to buy more US goods as well as investment by Indonesian companies in the US. 'It will be near zero (tariffs for US main exports), but it will depend as well on how much the tariffs we get from US,' Airlangga said. Garuda's CEO has said it is in discussions with US Boeing to buy up to 75 units of aircraft. Garuda and Indofood group did not immediately respond to requests for comment. The US goods trade deficit with Indonesia was US$17.9 billion in 2024, according to the US Trade Representative. US exports to Indonesia include soybeans, petroleum gases and aircraft, Indonesian government data showed. 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 When asked whether the trade talks include military deals, Airlangga said they were 'not part of the negotiation'. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters that in return, Jakarta has asked the US for preferential tariffs on its main exports, including electronics, textiles and footwear. 'We want them to lower the tariffs (for those goods) as low as possible,' he added. Indonesia has also offered the US opportunities to invest in critical minerals projects, including in its abundant resources of copper, nickel and bauxite. REUTERS
Reuters
04-07-2025
- Business
- Reuters
Indonesia offers to buy U.S. aircraft, wheat in tariff negotiations
JAKARTA, July 4 (Reuters) - Indonesia will offer to step up purchases of aircraft by state carrier Garuda Indonesia ( opens new tab and wheat by instant noodle giant Indofood ( opens new tab, in tariff talks with the United States, its chief economics minister told Reuters. Airlangga Hartarto, who is also the Southeast Asian nation's lead negotiator, said the government has also offered near-zero tariffs on key American exports, including agriculture products, which he said pay tariffs of between 0% and 5%. Jakarta is facing a 32% tariff in U.S. markets. It previously said it would sign a $34 billion pact with U.S. partners next week, which includes commitments to buy more U.S. goods as well as investment by Indonesian companies in the United States. "It will be near zero (tariffs for U.S. main exports), but it will depend as well on how much the tariffs we get from U.S.," Airlangga said. Garuda's CEO has said it is in discussions with U.S. Boeing (BA.N), opens new tab to buy up to 75 units of aircraft. Garuda and Indofood group did not immediately respond to requests for comment. The U.S. goods trade deficit with Indonesia was $17.9 billion in 2024, according to the U.S. Trade Representative. U.S. exports to Indonesia include soybeans, petroleum gases and aircraft, Indonesian government data showed. When asked whether the trade talks include military deals, Airlangga said they were "not part of the negotiation". Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters that in return, Jakarta has asked the United States for preferential tariffs on its main exports, including electronics, textiles and footwear. "We want them to lower the tariffs (for those goods) as low as possible," he added. Indonesia has also offered the United States opportunities to invest in critical minerals projects, including in its abundant resources of copper, nickel and bauxite.
CNA
04-07-2025
- Business
- CNA
Indonesia offers to buy US aircraft, wheat in tariff negotiations
JAKARTA: Indonesia will offer to step up purchases of aircraft by state carrier Garuda Indonesia and wheat by instant noodle giant Indofood, in tariff talks with the United States, its chief economics minister told Reuters. Airlangga Hartarto, who is also the Southeast Asian nation's lead negotiator, said the government has also offered near-zero tariffs on key American exports, including agriculture products, which he said pay tariffs of between 0 per cent and 5 per cent. Jakarta is facing a 32 per cent tariff in US markets. It previously said it would sign a US$34 billion pact with US partners next week, which includes commitments to buy more US goods as well as investment by Indonesian companies in the United States. "It will be near zero (tariffs for US main exports), but it will depend as well on how much the tariffs we get from US," Airlangga said. Garuda's CEO has said it is in discussions with US Boeing to buy up to 75 units of aircraft. Garuda and Indofood group did not immediately respond to requests for comment. The US goods trade deficit with Indonesia was US$17.9 billion in 2024, according to the US Trade Representative. US exports to Indonesia include soybeans, petroleum gases and aircraft, Indonesian government data showed. When asked whether the trade talks include military deals, Airlangga said they were "not part of the negotiation". Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters that in return, Jakarta has asked the United States for preferential tariffs on its main exports, including electronics, textiles and footwear. "We want them to lower the tariffs (for those goods) as low as possible," he added.
