RI–U.S. trade projected to soar to US$80 B following tariff negotiations: Kadin chief

  • Published on 13/05/2025 GMT+7

  • Reading time 3 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Novyan Bakrie, has projected that trade between Indonesia and the United States could reach US$80 billion (Rp1.321 trillion) following successful negotiations on reciprocal tariffs.

During a recent visit to the United States, Anindya met with several business leaders and highlighted the vast opportunities for expanding trade between the two nations.

“Our prediction at Kadin is that current trade − exports and imports between Indonesia and the U.S. − stands at around US$39-40 billion. Within 2-3 years, with the right strategies, this could double to US$80 billion. In four years, it could even reach US$120 billion,” Anindya said as quoted in a media statement on Monday, May 12, 2025.

He added that the forecast is supported by Indonesia’s current trade surplus with the U.S., valued at around US$18 billion. As part of the ongoing tariff negotiations, the U.S. has expressed interest in balancing import-export volumes between the two countries, which is expected to raise the total trade figure to US$58 billion.

“The remaining US$20 billion will come from increased exports and imports on both sides. Indonesia stands to benefit as the U.S. has restricted imports from several countries, including China,” Anindya cited.

He further noted that Indonesia has a competitive edge in sectors, such as textiles and footwear. These segments alone could boost exports by an additional US$10 billion, potentially pushing the total trade volume to US$60–70 billion.

Meanwhile, the United States sees opportunities in exporting agricultural goods to Indonesia, such as soybeans, wheat, dairy products, and meat. These exchanges would help realize the US$80 billion trade target, and potentially even reach US$120 billion in the future − approaching Indonesia’s current trade volume with China, which stands at US$130 billion.

“Again, I want to emphasize that Kadin is not directly involved in the negotiations. But the potential is clear − both countries have strong mutual interest in expanding trade,” he added.

Anindya also stressed that support from both the private sector and the government is vital in turning these projections into reality. Harmonizing policies, improving trade infrastructure, and enhancing logistics are key elements that will determine whether the ambitious trade targets can be achieved in the medium term.

He concluded by noting that the opportunity lies not only in the value of increased trade but also in creating a more balanced and mutually beneficial bilateral relationship between Indonesia and the United States. With ongoing discussions surrounding reciprocal tariffs and trade balance, a new chapter in Indonesia-U.S. economic cooperation may soon unfold.

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