JAKARTA — Indonesia has dispatched its Coordinating Economic Minister Airlangga Hartarto to the United States to finalize the details of a major trade agreement announced in July. The deal, which slashes tariffs for Indonesia from 32% to 19%, has been hailed by President Prabowo Subianto as a “new era” in bilateral trade relations.
Discussions have been ongoing since the July announcement, with Jakarta pushing for a tariff exemption on key exports such as crude palm oil (CPO). Minister Airlangga is set to meet with officials from the Office of the United States Trade Representative to complete negotiations. While tariffs have already been lowered on commodities like coffee and cacao, CPO and its derivatives remain the focus of ongoing talks.
Under the framework agreement, Indonesia has committed to boosting imports of US energy, agriculture, and aircraft products by billions of dollars. The deal is expected to be formally signed by President Prabowo and US President Donald Trump in 2026, according to Indonesian media. Data from the USTR indicates that the US goods trade deficit with Indonesia reached US$17.9 billion in 2024, up 5.4% from the previous year.