The MOU is part of Indonesia’s tariff negotiations with the US, but doesn’t amount to a conclusion to talks, Hartarto said. “We have to see later the final announcement by our US counterparts,” he said in response to questions about a tariff rate deal.
Hartarto, who is leading Indonesia’s efforts to reduce Washington’s planned 32% tariffs on Indonesian imports, said the MOU would involve sovereign wealth fund Danantara and private entities.
Southeast Asian nations, among the hardest hit globally by US President Donald Trump’s planned tariffs, have been racing to seal trade deals with Washington ahead of July 9, the trade deadline the US has imposed on countries to secure deals to avoid higher tariffs.
Hartarto’s statement comes hours after Trump announced a deal with neighboring Vietnam, which secured a lowered tariff rate of 20%.
See also: Philippine central bank chief sees another rate cut in August
Indonesia, Southeast Asia’s largest economy, has already eased or eliminated some import restrictions as part of its bid to narrow its US$18 billion trade surplus with the US.
It’s also vowed to remove non-tariff barriers as well as boost imports of US products, which may include oil, LPG and soybeans.
