Indonesia plans to import around 318.9 trillion rupiah (about US$19 billion) worth of American goods to avoid trade tariffs imposed by US President Donald Trump.

The announcement was made by Airlangga Hartarto, Indonesia’s coordinating minister for economic affairs, during a press conference in Jakarta on April 14.

Hartarto said the proposal will be presented during a meeting with US representatives in Washington, scheduled from April 16 to April 23.

The plan aims to address a trade imbalance between the two countries, estimated from US$18 billion to US$19 billion.

Additionally, policy proposals focused on non-tariff measures will be discussed during the negotiations.

Hartarto highlighted that Indonesia’s trade tariffs on US goods, particularly agricultural products like soybeans and cotton, are already low. This makes non-tariff barriers a key area of negotiation.

This move follows the US imposing a 32% tariff on Indonesian goods, prompting President Prabowo Subianto to assign several ministers to engage in diplomatic efforts.

The team, led by Hartarto, includes Finance Minister Sri Mulyani and Foreign Minister Sugiono. They are scheduled to meet with US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, among others.

🔗 Source: CNN Indonesia

🧠 Food for thought

1️⃣ Indonesia’s economic diplomacy shows a shift from defense to proactive engagement

Indonesia’s approach to the new US tariffs represents a departure from traditional reactive trade diplomacy to a more strategic, proactive engagement.

The $19 billion import commitment addresses the exact trade deficit figure ($18-19 billion) cited by Coordinating Minister Airlangga, showing a highly calculated response designed to directly neutralize the specific metric used to justify the 32% tariff 1.

This pivot from traditional tariff negotiations to offering direct import commitments is particularly significant as Indonesia already maintains minimal tariffs on US goods, with agricultural products like soybeans at zero tariffs and most other US imports facing no more than 5% duties 2.

The Indonesian delegation’s composition, including top economic ministers such as Sri Mulyani and Airlangga Hartarto, signals the strategic importance placed on these negotiations, mirroring high-level diplomatic approaches seen during previous bilateral negotiations with the US 3.

Historical US-Indonesia trade patterns show agricultural products and chemicals have been consistent top US exports to Indonesia, suggesting these sectors will likely receive priority in the proposed import expansion 4.