Indonesia to Increase Imports from U.S. to Address Trade Imbalance, Says Prabowo

TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto has affirmed the plan to augment its imports of goods from the United States as a measure to mitigate the trade deficit that has been a point of contention for the latter nation. This trade imbalance has become the basis for potential reciprocal tariffs or trade retaliation by the U.S. against Indonesia.

The Head of State has directed the Coordinating Minister for Economic Affairs, Airlangga Hartarto, to engage in negotiations with the United States. "We have a US$17 billion surplus, and we intend to purchase US$17 billion worth of goods from America," said Prabowo during an economic gathering held at Menara Mandiri, Sudirman, Jakarta, on Tuesday, April 8, 2025.

He elaborated that several commodities or products from the U.S. have the potential for increased import volumes. These include wheat, cotton, as well as oil and natural gas.

"What are our needs from America? We need approximately US$9 billion in Liquefied Petroleum Gas (LPG). We need fuel, so we can resume fuel imports. We need technological equipment. We need soybeans from them, and notably, wheat, cotton, and aircraft," Prabowo specified.

Reciprocal tariffs are duties imposed by the U.S. on countries with which it experiences a trade deficit, meaning these countries export more to the U.S. than they import. Conversely, the U.S. faces a trade deficit with these nations.

On Wednesday, April 2, 2025, U.S. President Donald Trump announced a minimum 10 percent increase in tariffs on goods entering the country from numerous nations globally, including Indonesia.

Furthermore, Indonesia is also subject to reciprocal tariffs. According to a post from the White House on Instagram, Indonesia ranks eighth among the countries facing an elevated import tariff of 32 percent.

Indonesia is not the sole nation in Southeast Asia affected by U.S. trade policies. Malaysia, Cambodia, Vietnam, and Thailand have also experienced increases in import tariffs, set at 24 percent, 49 percent, 46 percent, and 36 percent, respectively.

The United States Trade Representative's Office (USTR) asserts that the trade relationship between America and Indonesia resulted in a deficit of US$17.9 billion in 2024. This represents an increase of 5.4 percent, or US$923 million, compared to the deficit in 2023.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto had indicated plans for negotiations aimed at reducing the disparity in the trade balance. There are approximately 10 primary export and import commodities that will form the basis for negotiations regarding non-tariff barriers offered by the Indonesian government to the United States.

Editor's Choice: Indonesia's Lobbying Over U.S. Tariffs 'Likely Futile,' Says UI Professor

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