Several flour mills in Indonesia will purchase at least 1 million tons of US wheat. This plan will be confirmed in an agreement to be signed on behalf of the Indonesian Wheat Flour Producers Association (APTIND). This agreement is said to be part of the Indonesian government's efforts to avoid the adverse effects of US President Donald Trump's high tariff policy on imports from various countries, including Indonesia. This was revealed by Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto, as reported by the AFP news agency on Monday (July 7th, 2025). Airlangga stated that Indonesia's increased agricultural imports from the US are intended to avoid stricter tariffs if a new agreement is not reached, which is scheduled to officially take effect on August 1, 2025. The agreement will include an agreement to import 1 million tons of wheat from the US annually for the next five years, with an estimated value of USD 1.25 billion. "We have an agreement between APTINDO and the US wheat association to purchase 1 million tons of wheat from 2026 to 2030," said APTINDO Chairman Franciscus (Franky) Welirang. The agreement is projected to be worth USD 250 million per year and is scheduled to be signed in Jakarta today, Monday (July 7th, 2025).
Last week, Donald Trump announced he would announce new tariffs against various countries. He also warned that levies would be reimposed at a higher level than those announced in April 2025. It should be noted that the tariffs announced by Trump in April 2025 were postponed for 90 days from their effective date.Indonesia itself, despite being a major US trading partner, will face a potential tariff of 32% on top of the base tariff of 10%. The US Trade Representative Office recorded a trade deficit between Indonesia and the US of USD 17.9 billion in 2024, an increase of approximately 5.4% from the previous year. It was reported that, amid ongoing negotiations, Coordinating Minister Airlangga promised to increase energy and goods imports from the US to cover this deficit.
