The White House declared on Thursday that the United States and Indonesia have finalized a trade agreement that sets tariff levels and addresses non-tariff trade barriers.
As part of the deal, U.S. tariffs on imports from Indonesia will be lowered from 32% to 19%, while Indonesia will remove restrictions on over 99% of U.S. exports and commit to buying more than $30 billion worth of American goods.
The deal was finalized during Indonesian President Prabowo Subianto’s visit to Washington for the inaugural meeting of President Trump’s ‘Board of Peace.’ On Friday, Subianto and Trump formally signed the Agreement of Reciprocal Trade (ART) in Washington, D.C.
U.S. Trade Representative Jamieson Greer stated that the agreement will ‘break down trade barriers’ while promoting the interests of the American people.
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the finalized deal benefits both countries and is expected to boost investment in Indonesia. He added that the U.S. accepted around 90% of Indonesia’s requests regarding tariff terms.
Under the ART agreement, 1,819 agricultural and industrial products will enter the U.S. duty‑free or be exempt from import tariffs. These include palm oil, coffee, cocoa, spices, rubber, electronic components such as semiconductors, and aircraft parts.
The U.S. will also grant zero tariffs on textiles and apparel through a Tariff Rate Quota (TRQ) system. In return, Indonesia will eliminate tariffs on U.S. goods widely consumed domestically, particularly soybeans and wheat.
Indonesia has further pledged to facilitate trade by reducing both tariff and non-tariff barriers, with a particular focus on providing regulatory certainty in the technology (ICT), health, and pharmaceutical sectors.
Alongside the signing of the ART, 11 related MoUs were also ratified, covering sectors such as energy, agriculture, technology, and others, with a combined value of $38.4 billion. Indonesia will support U.S. companies in developing the country’s rare earth infrastructure, helping Washington secure a larger supply of critical minerals.
The two nations also agreed to create a Council of Trade and Investment to oversee the implementation of the ART.
On Wednesday, Indonesian and U.S. firms signed a series of deals worth $38.4 billion across mining, technology, textiles, and other industries.
The agreement will take effect 90 days after completing legal procedures in both countries, including consultations with the Indonesian Parliament and relevant processes in the United States.
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