The U.S. government under President Donald Trump and the Indonesian government have officially announced an agreement to reduce U.S. import tariffs on Indonesian goods from 32% to just 19%.
Under this agreement, the White House stated that Indonesia will remove trade barriers on more than 99% of U.S. goods, covering industries from agriculture, public health, seafood, and technology to automotive-related products. Meanwhile, the U.S. will grant tariff exemptions to certain Indonesian goods, especially clothing and textiles made using cotton or synthetic materials sourced from the U.S.
The agreement was reached during Indonesian President Prabowo Subianto’s visit to Washington, D.C. to attend the inaugural meeting of the "Peace Committee," an initiative by Trump to discuss the restoration of the Gaza Strip.
Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, revealed that the U.S. accepted 90% of Indonesia’s proposed tariff conditions, granting tariff exemptions on more than 1,700 products, including key exports like palm oil, as well as coffee, spices, chocolate, and natural rubber.
Indonesia agreed to open its market further to American products in exchange, accepting U.S. standards on vehicle safety, emissions, medical devices, and pharmaceuticals. Additionally, it will facilitate American companies' development of rare mineral infrastructure in Indonesia, helping the U.S. expand supply sources of critical minerals essential for the high-tech industry.
Beyond the governmental agreement, private companies from both countries signed business partnership deals totaling over $38.4 billion (approximately 1.2 trillion baht), covering mining, technology, and textile industries.
President Prabowo stated that these agreements are part of the tariff deal and will help Indonesia reduce its trade surplus with the U.S. to achieve greater balance. "I look to the future of the two countries’ relationship with great confidence," he said.
The agreement will take effect within 90 days, with both parties retaining the option to negotiate additional details in the future.
/sourceBBC