Indonesia to spend Rp578 trillion under U.S. trade deal, experts urge caution
Indonesia must prepare around Rp578 trillion (US$35.4 billion) to fulfill commitments under a trade agreement proposed by the U.S. President Donald Trump, including US$15 billion in oil and gas imports, the purchase of 50 Boeing aircraft, and US$4.5 billion worth of U.S. agricultural products, an economist has warned.
“While the deal secures a tariff reduction from 32 percent to 19 percent for Indonesian exports to the U.S., it could strain Indonesia’s state budget (APBN) if not carefully managed,” Paramadina University economist Didin Damanhuri said while addressing the Katadata Policy Dialogue on Thursday, July 24, 2025.
He questioned the feasibility of National flag carrier Garuda Indonesia purchasing 50 Boeing planes, calling for further evaluation of the national airline’s capacity and financial standing.
Didin also expressed concern over the energy imports, noting that they consist of fossil fuels − in contrast to the green energy transition goals of President Prabowo Subianto’s administration. He urged policymakers to assess whether the agreement aligns with broader economic indicators, such as rural purchasing power and farmer welfare.
Responding to the concerns, National Economic Council member Mochamad Firman Hidayat said that the Rp578 trillion import package would not burden the national budget because it would be financed entirely by the private sector. He added that Garuda's Boeing order was initiated before the trade talks, and the energy imports are not additional but rather a diversion from existing suppliers to the U.S..
Firman also highlighted that 40 percent of U.S. commodities imported to Indonesia already have zero percent tariffs, implying that the deal would not drastically disrupt the domestic industry.
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