Indonesia finalises tariff deal with United States

Indonesia has finalised the details of a reciprocal tariff agreement with the United States, with leaders from both countries expected to sign the deal next month, a senior Indonesian minister said on Monday.

Chief Economic Minister Airlangga Hartarto said the agreement was reached following talks with US Trade Representative Jamieson Greer in Washington, adding that all major and technical issues outlined in the Agreement on Reciprocal Tariff had been settled.

The deal follows Washington’s decision in July to cut tariffs on Indonesian goods from 32 percent to 19 percent, though negotiations over its terms had continued. Airlangga said the talks focused on balancing market access, with the United States granting exemptions for key Indonesian exports such as palm oil, coffee and tea.

He added that the United States is seeking greater access to Indonesia’s critical minerals. Under the framework agreement announced earlier, Indonesia has also pledged to spend billions of dollars on increased imports of US energy, agricultural products and aircraft.

Officials from both countries are expected to continue discussions next month to address remaining legal issues, ahead of a planned signing by Indonesian President Prabowo Subianto and US President Donald Trump before February.

According to data from the US Trade Representative, the United States recorded a goods trade deficit of $17.9 billion with Indonesia in 2024, a 5.4 percent increase from the previous year.