Hello and welcome to the details of Trump and Prabowo to sign Indonesia-US trade deal in January after resolving tariff disputes and now with the details
Nevin Al Sukari - Sana'a - US President Donald Trump and Indonesian President Prabowo Subianto shake hands as they pose for a photo, at a world leaders’ summit on ending the Gaza war, amid a US-brokered prisoner-hostage swap and ceasefire deal between Israel and Hamas, in Sharm el-Sheikh, Egypt, October 13, 2025. — Reuters pic
JAKARTA, Dec 23 —Indonesia and the US have agreed on all substantial issues for a tariff deal, paving the way for the signing of an agreement by presidents Prabowo Subianto and Donald Trump at the end of January, Indonesia’s chief negotiator said.
Senior Economic Minister Airlangga Hartarto, speaking from Washington late on Monday after meeting US Trade Representative Jamieson Greer, said the United States wanted access to Indonesia’s critical minerals and had agreed to give tariff exemptions to its palm oil, tea and coffee.
Indonesia is the world’s biggest producer and exporter of palm oil and a major global supplier of robusta coffee beans.
Talks between the two countries had appeared at risk of collapse earlier this month after the United States accused Indonesia of backtracking on prior commitments, although Jakarta said their “dynamics” were normal and it was just a matter of “harmonising the language”.
Airlangga repeated that there were “dynamics” during the talks, but said all substantial issues had been resolved and that the latest round of talks went well.
“The main thing, of course, is providing balanced market access for American products, and at the same time, market access for Indonesia to the US,” Airlangga said in a video briefing with Indonesian media.
Officials from both countries are now seeking to set up a meeting between Prabowo and Trump by the end of January, where a trade agreement could be signed.
Airlangga said there was no provision in the agreement that would limit Indonesia from making trade deals with other countries.
“No Indonesian policies are restricted by this agreement. This agreement is commercial and strategic in nature, and benefits the economic interests of both countries in a balanced manner,” Airlangga said.
A provision in a US-Malaysia tariff deal allows the United States to end the pact and restore the tariff Trump announced in April, if new deals endanger key US interests and talks fail to resolve its concerns.
Cambodia also has a similar clause in its US deal agreed in October, with some difference in the wording.
Trump imposed a 19 per cent tariff on Indonesia after a preliminary agreement in July, down from the 32 per cent he had threatened to impose in April, in return for Indonesia’s promises to remove tariff and non-tariff barriers facing American exports, as well as to buy more American goods to close the trade gap.
Airlangga said there was no risk of the US raising the tariff back to 32 per cent if the January signing does not materialise because everything within the draft agreement had been agreed by both sides.
“There is no factor that can hinder the signing of this ART (Agreement on Reciprocal Trade),” he said.
From January to October period, two-way trade between the two countries was worth US$36.2 billion, with Indonesia booking a US$14.9 billion surplus, Indonesian data showed. The US is Indonesia’s second biggest export market. — Reuters
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