Indonesia, US Finalise Tariff Deal, Leaders to Sign Next Month

Indonesia has finalised the details of a tariff agreement with the United States, a senior minister said. The deal is expected to be signed by the leaders of both countries next month.

In July, Washington reduced tariffs on Indonesian goods from 32 percent to 19 percent. Since then, talks have continued to finalise the remaining details.

Indonesia’s chief economic minister, Airlangga Hartarto, said the agreement was reached after a meeting with United States Trade Representative official Jamieson Greer in Washington.

Airlangga said all major and technical issues in the Agreement on Reciprocal Tariff (ART) had been agreed by both sides. He added that the deal aims to ensure balanced market access.

As part of the agreement, the United States has granted exemptions for key Indonesian products, including palm oil, coffee, and tea. Airlangga also said the US is keen to gain access to Indonesia’s critical minerals.

Under the framework announced in July, Indonesia has committed to spending billions of dollars to increase imports of energy, agricultural products, and aircraft from the United States.

Officials from both countries are expected to meet again next month to finalise legal matters. Indonesian President Prabowo Subianto and US President Donald Trump are expected to sign the agreement before February.

According to USTR data, the United States recorded a goods trade deficit of $17.9 billion with Indonesia in 2024, an increase of 5.4 percent compared to the previous year.