The United States and Indonesia have reached a new trade agreement that will see reduced tariffs on Indonesian goods entering the US.
President Donald Trump announced that the planned 32% tariff on Indonesian imports has been lowered to 19% following a phone conversation with Indonesia’s president.
In return, American companies will be allowed full access to the Indonesian market.
While Indonesia has yet to release an official statement, a senior government official said a response would follow shortly.
The agreement marks another step in the US administration’s recent series of trade negotiations, launched after the White House introduced widespread tariffs earlier this year.
As part of the deal, Indonesia is set to purchase $15 billion worth of US energy products, $4.5 billion in American agricultural goods, and 50 Boeing aircraft. These figures are slightly below those previously reported by media outlets.
The US has long raised concerns over Indonesia’s high tariffs on certain American agricultural and industrial products.
Indonesia exported around $28 billion worth of goods to the US last year, with items like clothing, footwear, electronics, and palm oil being among the top categories.
Despite being one of America’s top 25 trade partners, the country trades more heavily with other Asian nations.
The US has already signed trade arrangements with the UK, China, and Vietnam. However, many of those deals kept US tariffs in place and left key details unresolved.
The current strategy from the US includes pushing for quick deals, with some countries adjusting to new tariff conditions rather than trying to avoid them altogether.
Observers note that while the economic benefits for Indonesia may be limited, maintaining a cooperative stance with the US appears to be a priority.
More trade agreements are expected to be announced in the coming weeks.