Washington and Jakarta – United States Secretary of State Marco Rubio discussed tariffs and ways to deepen defense and security cooperation with Indonesia in a meeting with the Indonesian foreign minister on Wednesday, the US State Department said.
Rubio and Indonesian Foreign Minister Sugiono "discussed ways to deepen defense and security cooperation, including efforts to uphold freedom of navigation and overflight in the South China Sea in accordance with international law," the State Department said in a statement.
The top diplomats also discussed US reciprocal tariffs on Indonesia, and Rubio "welcomed Indonesia's efforts to introduce economic reforms toward a fair and balanced trade relationship," the department added.
Indonesia is facing a 32 percent tariffs on its imports to US in President Donald Trump's trade measures, among the worst in Southeast Asian countries.
Cambodia is hit the hardest by 49 percent and followed by Vietnam and Thailand by 46 percent and 36 percent, respectively.
As other countries in the region, Indonesia has chosen to negotiate with US while strengthening regional ties with other countries in Asia.
President Prabowo Subianto has vowed that he would dismantle regulations that have been deemed as trade barriers by the US government. His aides have also said that Indonesia is seeking to increase its imports of crude oil and liquefied petroleum gas from the United States by around $10 billion.
Kpler data show Indonesia imported 217,000 barrels per day of LPG last year, around 124,000 bpd of which came from the US. Around 23,000 bpd were imported from Qatar, while United Arab Emirates and Saudi Arabia each contributed around 20,000 bpd.
Indonesia also imported around 306,000 bpd crude oil last year, with Nigeria, Saudi Arabia and Angola as the top suppliers, Kpler data showed. Around 13,000 bpd were imported from the US.
Asked about the US LPG import proposal, a spokesperson at Indonesian energy firm Pertamina, the biggest LPG retailer, said the company is conducting reviews of its imports and awaiting instructions from the government.
To make room, Indonesia would need to cut LPG imports from other origins, Putra Adhiguna, managing director at thinktank Energy Shift Institute, said, adding it could start by reducing by 20 percent to 30 percent its LPG imports from non-US sources, depending on existing contracts.
In total, Indonesia plans to buy US goods worth $18 billion to $19 billion as it seeks to eliminate its trade surplus with the US and avoid a threatened 32 percent tariff on its exports.