US signs agreement with Indonesia on 19% tariffs
Indonesian President Prabowo Subianto in Washington attended US President Donald Trump's first Board of Peace meeting
The White House announced a reciprocal trade agreement with Indonesia, led by President Prabowo Subianto, who in Washington attended US President Donald Trump's first Board of Peace meeting.
Under this agreement, Southeast Asia's largest economy will eliminate tariffs on 99% of US goods, while the US will keep tariffs on most Indonesian goods at 19%, the White House said. This is the same percentage that the US has set for Cambodia and Malaysia. Indonesia also agreed to address non-tariff barriers on US goods and to remove restrictions on exports of essential minerals and other industrial raw materials to the US.
The signing of the agreement by Indonesian Economy Minister Airlangga Hartarto and US Trade Representative Jamieson Greer came after months of negotiations, after Washington agreed last year to reduce Indonesian exports to the US to 19%, from an initial rate of 32%.
"This agreement respects the sovereignty of both countries," Airlangga said from Washington during an online press conference with Indonesian media, describing the agreement as a 'win-win' for both countries.
Coffee, chocolate, natural rubber and Indonesian spices will be exempt from tariffs, the Jakarta government said in a note, adding that some 1,700 other commodities, including palm oil, its main export product, could also be exempt.
