Indonesia is still negotiating the details with the US to complete its new trade deal. The US reduced an intended tariff on Indonesian goods from 32% to 19% as part of the deal but Jakarta still wants to negotiate the details of tariff stacking and determining which exports will be considered strategic, according to Reuters, an official with the Ministry of Economy said.
Hai #SahabatEkon
Era baru hubungan dagang yang saling menguntungkan, Indonesia dan Amerika Serikat capai kesepakatan negosiasi tarif impor sebesar 19%.
Yuk simak.https://t.co/PLMbrFW6Ob#Tarif #AS #EKONomiLaju #IndonesiaMaju #TerbaikUntukIndonesia #BerAKHLAK pic.twitter.com/SXBmTAKLxK
— Kemenko Perekonomian RI (@PerekonomianRI) July 17, 2025
Key Agreement Negotiations:
Susiwijono Moegiarso, the senior official, told reporters on Friday that the 19% tariff would be imposed on top of already existing sectoral duties, so this is not going to completely replace the previous tariffs. Indonesia is asking for an exemption from the levy for important commodities like cocoa, rubber, crude palm oil, coffee and nickel. As the largest producer of palm oil in the world, Indonesia provided 85% of US imports in 2024.
Jakarta has agreed to exempt US technology products from its “local content” mandates in return for flexibility on exports, which compelled companies to use domestically produced components.
Reciprocal Trade Measures:
The US – Indonesia agreement also contains several coordinated commercial commitments. Indonesia will buy Boeing aircraft, Garuda Indonesia is among the buyers and its energy state company, Pertamina plans to buy US energy – subject to individual business considerations. In addition nearly all US goods coming into Indonesia will be at 0 tariffs (except alcohol and pork) and some import quotas will be loosened.
Broader Trade Framework:
In addition to tariff levels, the agreement contains non-tariff barriers: Indonesia will reduce barriers to obtaining import permits, bolster enforcement of intellectual property obligations, and commit to other international standards for nuclear goods. In a separate but similar negotiation, Indonesia intends to build on its partnership with the US on critical minerals, including nickel, copper, and cobalt, with discussions ongoing by way of high-level meetings in Washington.
