Indonesia has finalized a USD 34 billion commercial agreement with the United States involving energy and agricultural sectors, even as it prepares to re-engage in negotiations over a newly announced 32 percent tariff targeting Indonesian exports.  

The deal was presented at a high-level bilateral business forum on July 7, co-hosted by the Indonesian Embassy and the Coordinating Ministry for Economic Affairs. It includes a memorandum of understanding (MoU) to import USD 15.5 billion worth of US fuel and signals Indonesia’s intention to deepen trade and investment ties with American companies. 

“We believe this partnership can create thousands of quality jobs; support Micro, Small, and Medium Enterprises (MSMEs); and enhance the exchange of knowledge and technology between the two countries,” said Sade Bimantara, Chargé d'Affaires of the Indonesian Embassy in the United States as quoted by Antara News. 

The move comes just as President Donald Trump informed President Prabowo Subianto of a planned 32 percent tariff on Indonesian exports, effective August 1. Trump stated that the tariff could be lifted if Indonesian firms begin producing within the United States. In response, senior officials in Jakarta are exploring outbound investments, particularly in the US oil and gas sector, as a way to address trade concerns and meet Washington’s demands. 

Quoted by Jakarta Globe, Deputy Foreign Affairs Minister Arif Havas Oegroseno said, “Indonesia already has plans to invest all over the world and not just the US. But investment plans depend on the market, supply chain, and resource materials. … So there are many factors that we have to consider before setting up a production plant overseas.” When asked which sectors Indonesia would consider, he added, “Oil and gas are one good element.” 

In response to Trump’s tariff announcement on July 8, Coordinating Minister for Economic Affairs Airlangga Hartarto traveled to Washington, D.C., to lead negotiations with US officials. According to Head of the Presidential Communication Office Hasan Nasbi, Airlangga flew in directly from Rio de Janeiro after attending the BRICS Summit on July 7. Trump’s updated letter extended the original tariff implementation date from July 9 to August 1, giving both sides more time to reach a resolution. 

Airlangga is scheduled to meet with U.S. Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and other American officials to continue pushing for tariff relief. According to the Coordinating Ministry’s spokesperson Haryo Limanseto, Indonesia aims to highlight its global trade role and rich natural resources—such as nickel, tin, copper, and palm oil—as strategic assets. 

"The coordinating minister will convey that Indonesia is a very strategic country with all its natural resources," Haryo said. "We hope that the U.S. will reconsider."