Airlangga Reports Positive Talks With US on Looming Tariffs
Jakarta. Indonesia is stepping up diplomatic efforts to avert a looming 32 percent US import tariff that could harm its exports, dispatching its top economic policymaker to Washington and sealing energy deals with major American companies to mitigate trade tensions.
Chief Economic Affairs Minister Airlangga Hartarto led the Indonesian delegation this week for direct talks with US trade officials, including Commerce Secretary Howard Lutnick, in a bid to secure a “win-win solution” before the tariffs take effect on August 1.
“The meetings have been positive so far, but we'll have to wait until August 1,” Airlangga said in a message to reporters on Thursday.
The diplomatic push comes after President Donald Trump threatened to impose sweeping tariffs on Indonesian goods, a move Jakarta fears could disrupt its growing export sector and overall trade stability.
In what appears to be a goodwill gesture, Indonesia’s state-owned energy firm Pertamina, through its refining arm Kilang Pertamina Internasional (KPI), signed memoranda of understanding with ExxonMobil, Chevron, and KDT Global Resources this week. The deals are part of Indonesia’s proposal to increase energy imports from the U.S., aiming to offset trade imbalances and support negotiations.
The Indonesian government had earlier announced plans for potential agreements worth up to $34 billion with US partners, including $15.5 billion in energy imports, as part of its broader strategy to maintain trade ties while diversifying energy sources.
Details on the total value of the MoUs signed by Pertamina and its American counterparts remain undisclosed. However, officials hope the move will help defuse the threat of tariffs while strengthening investment and trade flows between the two countries.
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