Indonesia and the United States have finalized a reciprocal trade agreement that will lower U.S. tariffs on Indonesian exports to 19% from 32%, aligning Indonesia with other Southeast Asian partners such as Malaysia and Cambodia. The deal was signed in Washington D.C. by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and the U.S. Trade Representative Jamieson Greer after months of negotiations.
Washington will apply a flat 19% tariff on most Indonesian goods — significantly lower than the previously proposed rate. Key commodities important to Indonesia’s export economy — like palm oil, coffee, cocoa, natural rubber, and spices — are offered tariff exemptions, meaning they will enter the U.S. duty‑free. Aside from those exemptions, about 1,800 Indonesian product tariff lines are expected to receive 0% duty access under the deal.
Palm oil — a commodity that represents a significant share of Indonesia’s export revenue — was singled out in discussions and has been granted special treatment from U.S. tariffs as part of the final agreement, protecting one of the country’s most important agricultural sectors.
The pact is described by Indonesian officials as a “win‑win” that respects both nations’ economic interests. In exchange for tariff concessions, Indonesia commits to easing market access and reducing non‑tariff barriers for U.S. products — including vehicle safety standards, medical devices, and other categories. The agreement is expected to take effect within the next ~90 days, pending standard legal and procedural steps.
Officials from both countries also highlighted additional business cooperation, including significant commercial deals signed during Indonesian President Prabowo Subianto’s visit to Washington.
