Indonesia Seals $34 Billion Pact to Boost U.S. Trade Relations
Indonesia is set to sign a $34 billion trade pact with the U.S., aiming to enhance imports and investments, with a focus on fuel, energy, and agriculture sectors. The deal hopes to improve trade balance and address tariffs, while Garuda Indonesia considers buying 75 jets from Boeing.
In an ambitious move to bolster trade ties, Indonesia is poised to ink a $34 billion agreement with the United States next week. The pact aims to increase Indonesian investments and imports in fuel, energy, and agriculture sectors as part of a strategic trade deal before a looming deadline in July.
Jakarta faces a significant 32% U.S. tariff, prompting attempts to boost U.S. imports. Indonesia had a trade surplus of $17.9 billion with the U.S. last year, and the upcoming deal seeks to balance trade relations, inspired by Vietnam's revised tariff agreement with the U.S.
In related developments, Garuda Indonesia, facing post-pandemic recovery challenges, is negotiating a purchase of up to 75 aircraft from Boeing. This potential acquisition forms part of broader discussions, though its impact on tariff talks remains uncertain. The airline recently secured a $405 million loan for fleet maintenance.
(With inputs from agencies.)
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