The deal, set to be signed on July 7, will mean Indonesia increases imports of US fuels and will see investment by Indonesian companies in energy and agriculture sectors in the US, according to the Indonesian Chief Economic Minister Airlangga Hartarto.
Trade
Firewall – Indonesia will relax import regulations on goods ranging from fertilizers to footwear, aiming to enhance competitiveness and bolster ongoing US tariff talks and other trade negotiations.
Indonesia officially became part of the China-led BRICS bloc early this year. Southeast Asia’s largest economy now wants to secure a seat at the group’s multilateral development bank, NDB.
Indonesia’s central bank kept interest rates steady on Wednesday, maintaining a cautious stance due to external uncertainties and ongoing geopolitical tensions. Bank Indonesia left its benchmark seven-day reverse repo rate unchanged at 5.50%, while also holding the overnight deposit facility rate at 4.75% and the lending facility rate at 6.25%.
The Indonesian government has lifted quota restrictions on live cattle imports to ensure the availability of meat and milk supplies and to strengthen national food security.
Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June.
Malaysia and Indonesia are two countries where China is making significant inroads with projects including industrial parks, ports, nickel-processing plants, auto factories and more.
USTR report criticises how QRIS implementation limits access for international stakeholders — particularly US companies — and creates an imbalance in Indonesia’s digital payments market.
Indonesia wishes to explore critical mineral collaboration with Australia – an ambition Australia needs to take seriously.
Indonesian manufacturers are urgently seeking new export markets, after the United States last month announced a 32 per cent tariff on its goods.
Indonesia must ride this momentum to adapt by pushing for regional economic integration, diversifying partners and increasing export competitiveness.
On April 6, 2025, the Indonesian Coordinating Ministry for Economic Affairs made it clear that Indonesia, too, aims to engage in diplomacy and negotiations with the US instead of resorting to retaliatory measures. There are at least four reasons why Jakarta cannot afford to engage in a protracted trade war with Washington.
Diversifying exports to countries beyond the US is unfeasible in the short term because of either limited market demand or intense competition from local players in target countries.
Australia and Indonesia have discussed shared concerns about regional and global economies amid escalating trade tensions in the wake of US President Donald Trump’s tariff hikes.
Indonesia’s currency is at a record low against the US dollar amid concerns over President Prabowo Subianto’s policies.
US President Donald Trump has imposed a steep 32 percent tariff on imports from Indonesia, significantly higher than the baseline 10 percent levied on many other countries.
