Indonesia plans to buy more soybeans and soybean meal from the US

Indonesia will increase imports of food and goods from the United States and reduce orders from other countries where it currently buys products, Reuters reports, according to the country’s Chief Economy Minister Airlangga Hartarto.

Airlangga is in Washington as part of a delegation of senior officials who will meet with their American counterparts to negotiate the lifting of a 32% tariff on Indonesian exports that has been suspended for 90 days.

Indonesia has proposed increasing imports from the United States by up to $19 billion, including energy imports, and boosting purchases of agricultural products including wheat, soybeans and soybean meal, to eliminate a trade surplus with Washington and avoid tariffs threatened by the Trump administration.

Indonesia will also work on critical minerals and simplify procedures related to importing American horticultural products, the minister said. “We will also help American companies operating in Indonesia obtain permits and incentives,” he added.

After meeting with the US Trade Representative and Commerce Secretary, the two countries agreed to conclude the talks within the next 60 days.

Pakistan had previously said it would offer to buy more cotton and soybeans from the US in a bid to halve its trade surplus and avoid tariffs imposed by President Donald Trump. The South Asian country wants to cut the trade imbalance to less than $2 billion from about $4 billion in the current fiscal year.

Companies from Indonesia, the world’s largest palm oil producer, are also looking to new markets in Europe, Africa and the Middle East as they seek to shield themselves from the fallout from the trade war with the US. Palm oil is one of Indonesia’s biggest exports to the United States, and although Trump announced a 90-day suspension of tariffs, producers say the uncertainty is forcing them to look for other markets.

Tags: soybean, soybean meal, Indonesia