Indonesia and the United States have finalised a trade agreement lowering U.S. tariffs on Indonesian goods to 19% from 32%, with exemptions secured for palm oil and several other major exports.
The deal was signed in Washington by senior economic minister Airlangga Hartarto and U.S. Trade Representative Jamieson Greer during President Prabowo Subianto’s visit to the United States.
Airlangga described the agreement as a “win-win” that respects both countries’ sovereignty, while the White House said the pact would remove trade barriers and advance U.S. economic interests.
Palm oil, which accounts for around 9% of Indonesia’s total exports, will be exempt from the 19% tariff. Indonesia is the largest supplier of palm oil to the United States, accounting for between 61% and 85% of total imports in recent years. Exports were valued at about $3.36 billion in early 2025, significantly higher than those of other suppliers.
Between 2020 and 2025, Indonesia commanded roughly 61% to 90% of the U.S. palm oil market, well ahead of Malaysia, the second-largest supplier, followed by Colombia and Ecuador.
Coffee, cocoa, rubber and spices will also be exempt from tariffs.
Selected clothing and textile products made with U.S.-sourced cotton and synthetic materials will qualify for a zero tariff under a quota mechanism that is still being finalised. The quota will be determined by the volume of U.S. inputs used in production.
In return, Indonesia will remove trade barriers on more than 99% of U.S. imports across sectors including agriculture, healthcare products, seafood, technology and automotive-related goods.
Jakarta has also committed to facilitating over $30 billion in purchases of American goods, including cotton, soybeans, beef, Boeing aircraft and energy supplies.
Indonesia agreed to accept U.S. product standards covering vehicle safety, emissions, medical devices and pharmaceuticals, and to address non-tariff barriers such as local content requirements.
The agreement includes measures related to critical minerals, a sector viewed as strategically important by Washington.
Indonesia will ensure production at foreign-owned mineral processing facilities aligns with national mining quotas for nickel, cobalt, bauxite, copper and manganese. It also pledged to take action against foreign-controlled companies operating in ways that harm U.S. trade interests and to facilitate investment in critical minerals and rare earth development.
Airlangga said U.S. requests to include non-economic issues, such as nuclear reactor development and the South China Sea, were dropped during negotiations.
The pact will take effect 90 days after both sides complete the required legal procedures.
During the visit, President Prabowo and President Donald Trump also signed a document titled “Implementation of the Agreement Toward a New Golden Age for the U.S.-Indonesian Alliance,” aimed at strengthening long-term economic security and growth.
Earlier in the week, Indonesian and U.S. companies announced commercial agreements worth $38.4 billion across mining, technology, textiles and other sectors.
U.S. President Donald Trump said he sees progress between Israel and Lebanon after talks with Netanyahu, while Hezbollah has rejected a new ceasefire ...
Azerbaijan has strongly rejected allegations published by CNN claiming that its territory was used for Israeli military and intelligence operations ag...
Azerbaijan is once again at the centre of global climate diplomacy, hosting World Environment Day 2026 and bringing together international leaders, po...
The Eighth Global Environment Facility (GEF) Assembly has concluded in Samarkand, bringing together representatives from 186 countries to set environm...
Turkish President Recep Tayyip Erdoğan hosted Nigerien President Abdourahamane Tchiani in Ankara on Thursday, underscoring Türkiye’s growing engag...
U.S. President Donald Trump said he sees progress between Israel and Lebanon after talks with Netanyahu, while Hezbollah has rejected a new ceasefire proposal and Israel has ruled out a troop withdrawal.
Azerbaijan has strongly rejected allegations published by CNN claiming that its territory was used for Israeli military and intelligence operations against Iran, describing the report as entirely baseless and demanding a retraction.
The Eighth Global Environment Facility (GEF) Assembly has concluded in Samarkand, bringing together representatives from 186 countries to set environmental priorities and approve new funding for climate, biodiversity and sustainable development initiatives.
Iran’s Revolutionary Guards (IRGC) said in a statement that its Aerospace Force did not strike the Kuwait Airport passenger terminal on Wednesday, and that the destruction was instead caused by a failed U.S. Patriot missile.
Five Azerbaijani citizens have been killed and three others injured following drone attacks on two cargo vessels in the Sea of Azov, Azerbaijan's Foreign Ministry said on Friday.
Israel and Lebanon have agreed to implement a ceasefire after U.S.-backed talks in Washington. The deal requires Hezbollah to halt attacks and withdraw from southern Lebanon, while both sides will resume direct talks later this month aimed at reaching a broader agreement.
Azerbaijan has strongly rejected allegations published by CNN claiming that its territory was used for Israeli military and intelligence operations against Iran, describing the report as entirely baseless and demanding a retraction.
As Armenia heads toward parliamentary elections on 7 June, the country's relationship with Azerbaijan is emerging as one of the defining issues of the campaign, with analysts and international observers highlighting the role of regional politics in shaping voters’ mindsets.
People across Gaza are facing a worsening humanitarian crisis, with millions struggling to access food, clean water, shelter and medical care as the conflict continues.
The next time a goal goes in during a Champions League final, fans around the world could watch it from every angle at once — frozen, rotated and replayed in ways that were impossible only a few years ago.
An ageing, poorly insured shadow armada now accounts for around one-sixth of the world's tanker fleet. Hidden by design and fraught with risk, it operates beyond conventional oversight. A maritime law expert explains how it works, who profits, and why much of the world looks the other way.
Azerbaijan has strongly rejected allegations published by CNN claiming that its territory was used for Israeli military and intelligence operations against Iran, describing the report as entirely baseless and demanding a retraction.
Turkish President Recep Tayyip Erdoğan hosted Nigerien President Abdourahamane Tchiani in Ankara on Thursday, underscoring Türkiye’s growing engagement with Africa’s Sahel region as geopolitical alliances continue to shift.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment