Indonesia Offers to Buy U.S. Aircraft, Wheat in Tariff Negotiations

BUSINESS AND TRADE - JAKARTA. Indonesia will offer to step up purchases of aircraft by state carrier Garuda Indonesia and wheat by instant noodle giant Indofood, in tariff talks with the United States, its chief economics minister told Reuters. Airlangga Hartarto, who is also the Southeast Asian nation's lead negotiator, said the government has also offered near-zero tariffs on key American exports, including agriculture products, which he said pay tariffs of between 0% and 5%.

Jakarta is facing a 32% tariff in U.S. markets. It previously said it would sign a $34 billion pact with U.S. partners next week, which includes commitments to buy more U.S. goods as well as investment by Indonesian companies in the United States.

"It will be near zero (tariffs for U.S. main exports), but it will depend as well on how much the tariffs we get from U.S.," Airlangga said.

Garuda's CEO has said it is in discussions with U.S. Boeing to buy up to 75 units of aircraft. Garuda and Indofood group did not immediately respond to requests for comment.

The U.S. goods trade deficit with Indonesia was $17.9 billion in 2024, according to the U.S. Trade Representative. U.S. exports to Indonesia include soybeans, petroleum gases and aircraft, Indonesian government data showed.

When asked whether the trade talks include military deals, Airlangga said they were "not part of the negotiation".

Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters that in return, Jakarta has asked the United States for preferential tariffs on its main exports, including electronics, textiles and footwear.

"We want them to lower the tariffs (for those goods) as low as possible," he added.

Indonesia has also offered the United States opportunities to invest in critical minerals projects, including in its abundant resources of copper, nickel and bauxite.