Indonesia and the US are entering the final phase of negotiations on a tariff agreement expected to provide zero-tariff access for several major Indonesian commodities. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that nearly all negotiation texts have been agreed upon, with both sides now focusing on final legal drafting. He also noted that other countries, including the UK, have raised no objections to the preferential arrangement, acknowledging that similar expectations from other trading partners are normal. Indonesia continues to pursue broader trade frameworks such as CEPA with the EU, Canada, and China to ensure balanced, fair, and friction-free trade relations.
Under the upcoming deal, Indonesian products not produced in the US—such as CPO, rubber, tea, coffee, and other rubber-based goods—are set to receive 0% tariffs, while discussions on textiles and footwear continue. The US has already reduced tariffs on certain Indonesian products from 32% to 19%. To support a more balanced trade relationship, Indonesia has committed to increasing imports of US energy products valued at up to USD15 billion and agricultural goods targeted at USD4.5 billion. The agreement also includes mutual investments, including a USD10 billion blue ammonia facility in the US. With the full trade and investment package nearing completion, Hartarto expressed optimism that the partnership will strengthen economic ties and help restore a healthier trade balance.
