Indonesia‘s decision to eliminate import tariffs on a range of U.S. products is poised to make American goods more affordable for Indonesian consumers and businesses. This policy shift, particularly impacting heavy industry and energy sectors, is expected to foster increased trade between the two nations.
The zero-tariff initiative is anticipated to considerably benefit consumers and industries reliant on key U.S.exports.According to bhima, these include:
Aerospace components: Parts for aircraft are likely to see a price reduction.
Machinery and heavy equipment: Industrial machinery and heavy-duty equipment from the U.S. will become more accessible.
Plastics: U.S.-manufactured plastic materials are expected to be cheaper.
Pharmaceuticals: The cost of American-made medicines may decrease.
Energy products: This category includes petroleum (BBM), Liquefied Natural Gas (LNG), and Liquefied Petroleum Gas (LPG). agricultural commodities: Key U.S. agricultural exports such as soybeans, wheat, and corn will also be subject to the new tariff policy.
Previously, these essential U.S. exports faced import duties ranging from 5% to 9%. The elimination of these tariffs represents a substantial cost saving.This trade development aligns with commitments made by Indonesia to increase its purchases of U.S.goods. Reports indicate Indonesia plans to acquire $15 billion worth of American energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft, with a notable interest in the 777 model. In parallel,Garuda Indonesia,the national airline,is reportedly in discussions to purchase between 50 and 75 boeing aircraft.