FX.co ★ Indonesia, U.S. Set 60-Day Deadline to Resolve Tariff Dispute

Indonesia and the United States have agreed to finalize negotiations within 60 days regarding the 32% tariff currently applied to Indonesian goods entering the U.S., a senior Indonesian official has announced. The discussions are focusing on areas such as investment, trade, critical minerals, and the resilience of supply chains. In an effort to alleviate the tariff burden, Indonesia has stated that it will increase its imports of U.S. oil and gas and continue procuring American agricultural products, including wheat, soybeans, and soybean milk. Coordinating Minister for Economic Affairs Airlangga Hartarto noted that President Prabowo Subianto has dispatched a delegation to work towards a resolution on the tariff matter. This delegation has already engaged with high-ranking U.S. officials, such as Secretary of State Marco Rubio and Commerce Secretary Howard Lutnick, and is planning a meeting with Treasury Secretary Scott Bessent in the coming week. Additionally, Finance Minister Sri Mulyani has indicated that U.S. exports of steel and medical equipment will benefit from reduced import duties, which will drop to a range of 0 to 5% from the current 5 to 10%.