Washington: The United States has decided to keep tariffs on Indonesian imports at 19%, following the signing of a reciprocal trade agreement between Indonesia and the U.S. The agreement, signed by Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, and U.S. Trade Representative Jamieson Greer, holds potential exemptions for nearly 1,700 commodity items. According to Thai News Agency, the Indonesian government announced the agreement after months of negotiations, marking a significant development following the tariff reduction in 2025 from an initial estimate of 32% to 19%. The U.S. will exempt key Indonesian exports such as coffee, chocolate, natural rubber, and spices from tariffs, alongside other potential exemptions including palm oil. The White House confirmed that Indonesia will reciprocate by removing tariff barriers on nearly all U.S. goods and addressing non-tariff trade barriers, such as rules of origin. Additionally, Indonesia will recognize U.S. standards in areas like au tomotive safety, greenhouse gas emissions, medical devices, and pharmaceuticals. Earlier, Indonesian President Prabowo Subianto had expressed hopes that participation in the U.S.-led Gaza peace plan committee might encourage the U.S. to reduce tariffs further to 18%, aligning with the rate imposed on India. President Subianto was in Washington, D.C., attending the peace committee's inaugural meeting, and is expected to sign an agreement with President Donald Trump aimed at strengthening U.S.-Indonesia relations. Meanwhile, businesses from both nations have recently signed agreements worth $38.4 billion, signaling a robust economic collaboration.
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