By Stefanno Sulaiman JAKARTA (Reuters) -Indonesia will highlight its strategic importance in global trade, especially its natural resources, as it forges ahead with negotiations to try to reduce a 32% tariff imposed by the United States, a government official said on Wednesday. Indonesia’s chief economic minister Airlangga Hartarto, who leads the negotiation team, is scheduled […]
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Indonesia tariff negotiator to meet Lutnick in US, aims to tout natural resources
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By Stefanno Sulaiman
JAKARTA (Reuters) -Indonesia will highlight its strategic importance in global trade, especially its natural resources, as it forges ahead with negotiations to try to reduce a 32% tariff imposed by the United States, a government official said on Wednesday.
Indonesia’s chief economic minister Airlangga Hartarto, who leads the negotiation team, is scheduled to meet with U.S. Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and other officials, spokesperson for the economic ministry Haryo Limanseto said, without providing a timeframe.
Indonesia’s 32% tariff will be imposed by the United States from August 1 and is unchanged from that threatened by Washington in April.
Southeast Asia’s biggest economy has proposed slashing its duties on American products to near zero and offered to increase U.S. purchases and investment in the country, amounting to about $34 billion.
“The coordinating minister will convey that Indonesia is a very strategic country with all its natural resources,” Haryo said. “We hope that the U.S. will reconsider.”
G20 economy Indonesia is a major producer of minerals such as nickel, tin, copper and is the world’s biggest exporter of palm oil.
Several Indonesian companies have signed initial deals with U.S. counterparts to increase purchases of energy, wheat, corn and cotton, among others.
Sovereign wealth fund Danantara Indonesia and textile company Indorama are also set to invest in the United States, Haryo added.
The Indonesian proposal has been praised by U.S. representatives, Haryo said. Indonesia hopes it can secure lower or the same tariff level as other nations in Southeast Asia.
Early in the talks, Indonesia had offered Washington a raft of concessions. The announcement by U.S. President Donald Trump ahead of the July 9 deadline came as a surprise, Haryo said.
“We see the U.S. government considers the (negotiation) globally, no longer country-by-country. We’ve submitted all the documents and have also agreed on negotiation level, but the final decision rests with Trump.”
(Reporting by Stefanno SulaimanWriting by Fransiska Nangoy, Gayatri Suroyo; Editing by Martin Petty)