Indonesia finalises reciprocal tariff deal with US: minister

JAKARTA, Indonesia: Indonesia has finalised details of a tariff deal with the United States, a senior minister said, with the leaders of both countries expected to sign it next month.

Washington in July slashed the tariff faced by Southeast Asia’s largest economy from 32 percent to 19 percent, but discussions over the details of the deal have been ongoing since then.

Indonesia’s chief economic minister Airlangga Hartarto said after a meeting with United States Trade Representative (USTR) Jamieson Greer in Washington that both countries had reached an agreement over the details of the deal.

“All of the substantive issues that have been regulated in the ART (Agreement on Reciprocal Tariff) document have been agreed by both parties, both the main and technical issues,” Airlangga said in a briefing from Washington on Monday.

One of the main points of the talks was to provide “balance” in market access for both parties, Airlangga said, adding that Washington provided exemptions to key Indonesian products including palm oil, coffee and tea.

He said, “the US very much hopes to gain access to (Indonesia’s) critical minerals”.

Under the framework deal announced in July, Indonesia has also committed to spending billions to increase energy, agriculture, and aircraft imports from the United States.

Officials from both countries will resume discussions next month to iron out legal issues, with presidents Prabowo Subianto and Donald Trump expected to sign the agreement before February.

Data from the USTR shows Washington’s goods trade deficit with Indonesia was $17.9 billion in 2024, up 5.4 percent from the year before.