Indonesia and the United States have resolved all substantive issues in their ongoing tariff negotiations, setting the stage for a landmark trade agreement expected to be signed by the end of January 2026 by Indonesian President Prabowo Subianto and U.S. President Donald Trump, senior officials said Tuesday.
Senior Economic Minister Airlangga Hartarto, who led Indonesia’s negotiating team, spoke from Washington, D.C., after productive talks with U.S. Trade Representative Jamieson Greer. He said the two sides have now agreed on all the major elements of a reciprocal tariff deal that would significantly expand market access for both countries.
Under the framework being finalized, the United States has agreed to tariff exemptions on key Indonesian export products, including palm oil, tea, and coffee — commodities for which Indonesia is a world-leading supplier. In return, Washington will gain enhanced access to Indonesia’s critical minerals sector, a priority for U.S. industry and national security interests.
Officials described the negotiations as having “normal dynamics” of diplomatic discussion, with both sides working through language and technical details without any substantive disagreements. Earlier this month, tensions surfaced when the U.S. accused Jakarta of backtracking on commitments, but Indonesian officials said those were misunderstandings that have since been harmonized.
“The main objective is to provide balanced market access for American products, while ensuring reciprocal access for Indonesian exports to the U.S. market,” Airlangga said in a briefing with Indonesian media.
A key element in the deal is that Indonesia retains the freedom to pursue other trade agreements globally; there are no provisions restricting Jakarta’s trade policies with third countries, officials noted.
Under a provisional understanding reached in July, the U.S. had already reduced threatened tariffs on Indonesian goods from 32% to 19%, pending final agreement. Trade between Indonesia and the United States was valued at $36.2 billion from January to October this year, with Indonesia posting a sizeable surplus of nearly $15 billion, underlining the importance of the bilateral relationship.
The next step will be scheduling a formal signing ceremony in late January 2026, in which Presidents Prabowo and Trump are expected to finalize the Agreement on Reciprocal Trade and symbolically cement the new phase of economic cooperation.
