Indonesia’s Surplus with US Soars Amid Tariff Negotiations
Jakarta. The Central Statistics Agency (BPS) reported Monday that Indonesia’s trade surplus with the US had grown amid the ongoing negotiations on Washington’s tariffs.
Indonesia is currently in talks with the US government in hopes that the latter will slash its 32 percent reciprocal tariff. After July 9, the US will begin charging nearly all its trading partners steep tariffs -- which differ by country -- as President Donald Trump wants to improve Washington’s trade imbalance. A 10 percent universal levy is already in place on imports coming to the American market.
Indonesia is giving itself a deadline of 60 days to reach an agreement on the tariffs. As Jakarta tries to appease Trump by promising to buy more American agricultural commodities, the gap in bilateral trade grows, according to the latest official statistics.
BPS data showed that Indonesia ran a $1.57 billion surplus in non-oil and gas trade with the US in February 2025. The numbers jumped to $1.98 billion the following month.
A surplus means that Indonesia’s exports to the US exceed what it imports. Electrical machinery and equipment made up the lion’s share of the surplus in March, adding $465 million to the positive trade balance. Followed by footwear ($239.7 million). Indonesia saw a $238.7 million surplus when trading animal/vegetable fats and oil, which would include its top commodity, palm oil.
“Indonesia's total surplus with the US hit $4.32 billion in the first quarter of 2025,” BPS’ head Amalia Adininggar Widyasanti told a press briefing.
The said figures, which also took into account oil and gas trade, marked quite a significant jump from the $3.61 billion surplus recorded in the same quarter in 2024. This also means that bilateral trade has become more imbalanced under the Trump 2.0 administration. The businessman-turned-politician returned to the White House on Jan. 20.
“The US -- alongside India and the Philippines -- has been the biggest contributor to our trade surplus over the past 10 years. Our highest-ever surplus with the US was $16.57 billion in 2022,” Amalia said.
BPS’ latest data only encompassed the trade figures up to the end of March. Trump announced his punitive tariff plans in early April. BPS will release April’s trade statistics next month. The statistics agency also revealed that Indonesia had run a 59-month surplus streak in overall trade since May 2020.
Tags: Keywords:Related Articles
Other than Indorama’s $2 Billion Deal, Indonesia Lacks Appetite in US Investment
Purwakarta-based company Indorama plans to invest $2 billion in a blue ammonia project in Louisiana.
Indonesia Says Local Content Reforms Are Domestic-Driven, Not Response to US Tariffs
The USTR has cited Indonesia’s local content regulations as a trade barrier that prompted the reciprocal tariffs.
ASEAN+3 Agrees to Use More of RCEP Pact Amid Trump’s Trade War
ASEAN+3 says escalating trade protectionism weighs on global trade.
McKinsey Says US Tariff Might Not Hit Indonesia Hard, But Companies Must Act Fast
Indonesian firms need to be aggressive to become part of the global supply chain to seize the opportunities that emerge from the trade war.
‘Early Bird Gets the Worm’: Airlangga Reflects on Swift Trade Talks with US
As Southeast Asia braces for the fallout from Washington’s sweeping tariff hikes, Indonesia is positioning itself as a proactive negotiator.
Airlangga: US Tariffs a Wake-Up Call for Indonesia to Reform
Indonesia ranks eighth among the countries affected by the US tariff hike, facing a 32 percent increase.
‘Don’t Fall Into Trump’s Talking Points,’ Indonesia Urged Amid US Tariff Escalation
Lili pointed out that the US maintains a surplus in services trade with Indonesia and that US companies have generated trillions in profit.
Time for Indonesia to Get Rid of Ageism in Hiring
Getting rid of age discrimination becomes more necessary to cushion the layoffs that Trump's tariffs might bring, analyst says.
No US Orders for West Java Ceramics Makers as Trade Policies Bite
As of April this year, only two containers of potteries had been shipped to Europe, with no deliveries recorded to the US.
Sri Mulyani Warns of Major Shift in Global Trade Order Amid US Tariff Hikes
Sri Mulyani noted that Indonesia’s prompt decision to engage with the US placed it in a stronger position than other countries.The Latest
UK Signs Agreement to Hand Sovereignty of Disputed Chagos Islands to Mauritius
Under the agreement, the UK will pay Mauritius 101 million pounds ($136 million) per year to lease back the base for at least 99 years.
Indonesia Seizes Millions of Illegally Imported Tools from China Tracked Through TikTok Ads
The operation targeted a warehouse belonging to Asiaalum Trading Indonesia, located in Cikupa, Tangerang Regency, Banten.
2 Staff Members of Israeli Embassy Killed in Shooting Near Jewish Museum in DC
Israeli officials identified the victims as Yaron Lischinsky, an Israeli citizen, and Sarah Milgrim, an American.
Indonesia Evacuates 10 Citizens from Conflict Zone in Northern Yemen
The Indonesian Embassy in Muscat issued a high-alert advisory on May 10 for areas including Hudaidah, Sana’a, Dhamar, Taizz, and Turbah.
Bahlil Takes Responsibility for LG’s Exit from $9.8b Battery Project
“The narrative that LG pulled out of the consortium is inaccurate," the minister said.Most Popular
