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Indonesia Finalizes $19 Billion U.S. Import Deal to Avert Tariffs

Jakarta commits to increased imports of U.S. energy, agricultural, and capital goods, while planning significant reductions in oil and LPG purchases from other suppliers.

A view of a container terminal at Tanjung Priok Port in Jakarta, Indonesia, February 12, 2025. REUTERS/Willy Kurniawan/File Photo
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Overview

  • Indonesia has formalized its pledge to boost imports of U.S. goods by $19 billion, including energy, wheat, soybeans, soybean meal, and capital goods.
  • The agreement was reached to prevent a threatened 32% tariff on Indonesian exports to the United States.
  • Jakarta plans to redirect up to 30% of its oil and LPG imports away from traditional suppliers such as Nigeria, Saudi Arabia, and Angola.
  • Last year, Indonesia imported 300,000 barrels of crude oil per day, with only 13,000 barrels per day coming from the U.S., highlighting the scale of the upcoming shift.
  • An Indonesian think tank predicts a 20–30% reduction in LPG imports from Middle Eastern suppliers to meet the new U.S. import commitments.