Monday, 26 January 2026 13:18

Proposed US–Indonesia Trade Deal Seen Expanding Bilateral Trade Up to Fourfold

A proposed trade agreement between the United States and Indonesia is expected to significantly expand bilateral trade, potentially increasing its value up to four times from the current level of approximately USD 40 billion annually. Speaking at the World Economic Forum in Davos, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Anindya Bakrie said the deal would create more balanced trade flows while substantially enlarging overall trade volumes. Indonesia has traditionally recorded a trade surplus with the US, estimated at around USD 2 billion per month, and the agreement is viewed as a constructive step toward mutual market expansion rather than restriction.

The agreement is also expected to improve market access and reduce trade barriers, including lowering potential additional tariffs on Indonesian exports from 32% to 19%. This would support stronger exports of Indonesian products such as palm oil, garments, electronics, and furniture, while allowing increased US exports including agricultural goods, energy products, and raw materials. Beyond trade, the deal is anticipated to stimulate two-way investment, strengthening long-term economic cooperation between the two countries. Officials confirmed that final discussions have been completed, with the signing potentially taking place as early as next month, signaling positive momentum in US–Indonesia economic relations.
Source

https://www.ajot.com/news/us-indonesian-trade-deal-could-boost-trade-four-fold-kadin-chair-says 

 

 

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