U.S. Expands Access to Indonesia's Key Minerals
Indonesia and the United States have reached an agreement on all key issues related to their tariff agreement. As a result, the leaders of both countries are expected to sign the agreement as early as next month.
According to Bloomberg and other sources on December 23 (local time), Airlangga Hartarto, Indonesia's Minister of Economic Affairs, announced the agreement after meeting with Jamieson Greer, the U.S. Trade Representative (USTR), in Washington, D.C. Minister Airlangga stated, "Both sides have agreed on all substantive issues stipulated in the bilateral tariff agreement document," adding, "The United States wanted access to Indonesia's key minerals, and it was agreed that tariffs on Indonesian palm oil, tea, and coffee would be exempted." Indonesia is the world's largest exporter of palm oil and a major supplier of coffee beans.
Indonesian President Prabowo Subianto and U.S. President Donald Trump are expected to hold talks and sign the bilateral tariff agreement as early as next month.
Previously, in April, the United States imposed a 32% reciprocal tariff on Indonesia, which was reduced to 19% through trade negotiations in July. As a result, Indonesian products exported to the United States are subject to a 19% tariff, while U.S. products exported to Indonesia are exempt from tariffs. Since then, the two countries have continued to discuss the details of the trade agreement.
According to USTR data, the U.S. goods trade deficit with Indonesia reached 17.9 billion dollars last year, up 5.4% from the previous year. From January to October this year, the trade volume between the two countries amounted to 36.2 billion dollars, with Indonesia recording a surplus of 14.9 billion dollars. For Indonesia, the United States is its second-largest export market.
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