The agreement was signed in Washington by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and United States Trade Representative (USTR) Jamieson Greer following months of negotiations.

Palm oil is among the strategic commodities granted duty-free access under the agreement, contributing approximately 9% to Indonesia’s total exports. Other key commodities such as coffee, cocoa, rubber, and spices will also benefit from zero-tariff entry into the US market.

The 19% tariff level aligns with similar agreements reached by the US with Southeast Asian countries including Malaysia, Cambodia, Thailand, and the Philippines, while Vietnam faces a slightly higher tariff of 20%.

Indonesia has also agreed to eliminate tariff barriers on most US products across various sectors and to adjust several non-tariff measures, including domestic content requirements (TKDN). Additionally, Indonesia will adopt certain US standards in sectors such as vehicle safety, emissions, medical devices, and pharmaceuticals.

The agreement includes strategic cooperation in critical minerals such as nickel, cobalt, bauxite, copper, and manganese, while also opening opportunities for US investment in Indonesia’s critical minerals and energy sectors.

The trade pact is scheduled to take effect within 90 days after both countries complete the required legal procedures.