Indonesia has proposed reducing import duties on US goods to nearly zero and committing to purchasing USD 500 million worth of US wheat in ongoing tariff negotiations.
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated on July 4, 2025, that Indonesia has proposed reducing tariffs on key US exports, including agricultural goods, to nearly zero as part of ongoing trade negotiations with the US.
The country also plans to purchase USD 500 million worth of US wheat. This move comes as Indonesia, which had a USD 17.9 billion trade surplus with the US in 2024, faces a 32% tariff for its exports to the US.
Airlangga, who is also designated as Indonesia’s lead negotiator, stated, “It will be near zero (tariffs for US main exports), but it will depend as well on how much the tariffs we get from the US.”
US exports to Indonesia include petroleum gases, soybeans, and aircraft.
In return, Indonesia is seeking preferential tariffs on its key exports, such as electronics, textiles, and footwear, according to Susiwijono Moegiarso from Indonesia’s Coordinating Ministry for Economic Affairs.
On 2 April 2025, Trump signed an executive order imposing a 10% baseline tariff on imports from all countries, including Indonesia. The move introduced reciprocal tariffs on imports from nations with large US trade deficits. The US had previously paused its “reciprocal” tariffs for 90 days, but that pause is set to end on 9 July, the same day the tariffs are expected to take effect.
