Indonesia’s $34 billion play for a softer U.S. tariff

Indonesia is ready to pump $34 billion into U.S. energy and agriculture projects—plus a possible 75‑jet Garuda order—to head off steep tariffs.

Jakarta will sign a memorandum of understanding worth $34 billion next week to boost Indonesian purchases and investments in the United States, Chief Economic Minister Airlangga Hartarto said.

"This shows that government, regulators, state-owned enterprises and the private sector are together in responding to the imposition of U.S. reciprocal tariffs," Airlangga noted.

The package covers extra fuel imports and new Indonesian investment in U.S. energy and agriculture, part of efforts to ease a looming 32% tariff on Indonesian goods.

Flag carrier Garuda Indonesia is separately negotiating to buy up to 75 Boeing aircraft.

Indonesia ran a $17.9 billion goods‑trade surplus with the United States in 2024; narrowing that gap, Airlangga noted, could win Jakarta a tariff deal "better than Vietnam’s." 

The accord will be signed on 7 July, demonstrating, he said, that government, state firms and private business "stand together" against U.S. duties.

Garuda, still recovering from the pandemic, recently secured a $405 million sovereign‑wealth‑fund loan for fleet upkeep.

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