Both the US and Indonesia have agreed to boost bilateral trade to $50 billion in the next few years, from nearly $26 billion last year. According to Geneva-based International Trade Centre, Indonesian goods and commodities accounted for only 0.88 per cent of overall American imports in 2017. Indonesia's annual exports to the US contracted 3 per cent between 2013 and 2017. In April last year, the Trump administration released a list of countries with which it has considerable trade deficits. Indonesia ranked 15 out of 16 countries.
Indonesia and the US trade complementary goods and commodities. In 2012, American airplane maker Boeing signed a $22.4 billion deal - its largest ever commercial airplane order - with Indonesia's Lion Air, the country's largest carrier by passenger volume. The Trump administration's move to impose 25 per cent import duties on steel will eventually push up aircraft production costs in the US.
Indonesia has benefited from significant tariff reductions under the Generalised System of Preferences (GSP) scheme since 1980. Last year, for instance, the facility led to reduced tariffs on $1.9 billion worth of Indonesian products. The trade delegation is expecting to expand its economic relations with the US through investments in areas such as the aviation sector.
