Stories From Indonesia

Gei Island, North Maluku
, , , , , , , , , , , , ,

Trump Tariff Nego: China, Nickel, Military Equipment, Distressed Airlines, Market Access All Being Mulled, Bloomberg

“..balanced, forward-looking economic relationship that yields tangible benefits for businesses and workers..”

Editor
4–5 minutes
, , , , , , , , , , , , , , , , ,

Indonesia Sees ‘Bold’ US Trade Deal, Offers Major Tariff Cuts, Bloomberg

From Bloomberg By Ben Otto, July 4, 2025

Indonesia is confident it is close to securing a “bold” trade deal with the US that will span critical minerals, energy, defense 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 July 9.

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.

Asia Races to Negotiate for Lower Tariffs Ahead of Deadline

Only Vietnam has been able to secure a trade deal with the US.

Critical minerals

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.

Ramping US imports

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 defense partner in the Indo-Pacific.”

Relaxing requirements for US imports

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. With assistance from Norman Harsono, Grace Sihombing, and Prima Wirayani

This post is based on https://www.bloomberg.com/news/articles/2025-07-04/-bold-indonesia-us-trade-deal-to-span-energy-minerals-defense.

In earlier news…

Indonesia-China Strengthen Technology & Energy Cooperation Amid Trump Tariff Hike, Bisnis.com

By Annisa Nurul Amara – Bisnis.com Friday, April 18, 2025

Bisnis.com, JAKARTA — Deputy Speaker of the Indonesian People’s Consultative Assembly (MPR), Eddy Soeparno, departed for China as the United States (US) government implemented a policy of hiking import tariffs for goods from China to 245%. Meanwhile, Indonesia is being hit with tariffs of 32%, with the potential to reach 47%.

Eddy said that his visit was in response to an invitation from the Chinese Government in Beijing and Shenzhen and was aimed at  strengthening relations between China and Indonesia in the areas of industry, technology, trade, as well as energy transition.

China is an important trading partner for Indonesia. “China and Indonesia have chosen their own ways in dealing with the dynamics of global trade tariffs. However, both countries continue to respect each other’s paths,” he said in a press statement, Friday (4/18/2025).

The National Mandate Party (PAN) politician believes that cooperation between Indonesia and China can continue to be developed in the area of trade as well as cooperation in information, technology and information, especially artificial intelligence (AI). “China’s rapid acceleration in the advancement of information technology is a lesson for the Indonesian government in how to recruit and manage the best talent in the field of information technology,” he said.

Eddy’s visit to Shenzhen was to meet the Vice President of the Global Government Affairs Department at Huawei Technologies, Wang Ke, and the Director of Asian Affairs for  Huawei Global, Anna Liu. Previously, he also met with the Chairman of the Chinese People’s Political Consultative Conference (CPPCC), Wang Huning, to strengthen relations between the two countries amid the current global political uncertainty.

This post is based on https://kabar24.bisnis.com/read/20250418/19/1870172/indonesia-china-perkuat-kerja-sama-teknologi-energi-di-tengah-kenaikan-tarif-trump

In related news:

Wang Huning, chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), meets with Eddy Soeparno, deputy speaker of the People’s Consultative Assembly of Indonesia, in Beijing, capital of China, April 15, 2025. [Xinhua/Gao Jie]

Context:

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Trending

Discover more with Stories From Indonesia

Subscribe now to keep reading and get access to the full archive.

Continue Reading