FX.co ★ Indonesia Offers US Aircraft and Wheat Purchases in Tariff Talks

According to a report by Reuters, Indonesia is prepared to enhance its procurement of aircraft from state-owned Garuda Indonesia and wheat from Indofood, the prominent instant noodle company, as part of ongoing tariff negotiations with the United States. Airlangga Hartarto, the Chief Economics Minister and Indonesia's principal negotiator, stated that the government has suggested implementing near-zero tariffs on significant American exports, particularly agricultural products, which are currently subject to tariffs ranging from 0% to 5%. Conversely, Indonesia faces a 32% tariff on its goods in US markets. The Indonesian government has previously announced plans to enter a USD 34 billion agreement with US partners in the coming week, entailing increased purchases of American goods by Indonesia and additional investments by Indonesian firms in the United States. Susiwijono Moegiarso, a senior official within Indonesia's Coordinating Ministry for Economic Affairs, indicated that Indonesia has sought preferential tariff treatment from the US for its key exports, including electronics, textiles, and footwear.