Indonesia, US Reach Consensus on Reciprocal Trade Agreement Substance

Jakarta, The Gulf Observer: Indonesia and the United States have reached an agreement on the substance of the Agreements on Reciprocal Trade (ART) following a series of intensive negotiations, Coordinating Minister for Economic Affairs Airlangga Hartarto announced on Tuesday.

The consensus was achieved after an official meeting between Minister Hartarto and United States Trade Representative (USTR) Ambassador Jamieson Greer on Monday (December 22) in Washington, D.C. Speaking during an online press conference, Hartarto said the agreement carries both commercial and strategic significance and is expected to advance the economic interests of both countries.

“This agreement is both commercial and strategic and will benefit the economic interests of both countries. Regarding the content and substance, discussions were held from December 17 to 22, and all aspects have been agreed upon by both parties,” Hartarto stated.

He noted that since the US government’s Liberation Day announcement on April 2, 2025—when reciprocal tariffs were imposed—Indonesia has engaged in sustained negotiations with Washington to address bilateral trade concerns. These efforts led to a joint statement on July 22, 2025, announcing a reduction in reciprocal tariffs on Indonesian goods from 32 percent to 19 percent.

Subsequent negotiations focused on finalizing a comprehensive trade agreement. Under the ART framework, Indonesia has committed to expanding market access for US products, addressing non-tariff barriers, and strengthening cooperation in areas including digital trade and technology, national security, and broader commercial relations.

In turn, the United States has agreed to grant tariff exemptions for Indonesia’s leading export products that are not produced domestically in the US, such as palm oil, cocoa, coffee, tea, and other commodities.

During the meeting with Ambassador Greer, Minister Hartarto emphasized the importance of resolving all key and technical issues to ensure a mutually beneficial outcome. Following extensive discussions, both sides reached agreement on all core elements forming the substance of the ART.

The agreement is scheduled to be signed by Indonesian President Prabowo Subianto and US President Donald Trump at the end of January 2026. Ahead of the signing, technical teams from both countries are set to meet in Washington, D.C. in the second week of January 2026 to finalize technical aspects, with completion targeted within one week. By the third week of January, the ART document is expected to be finalized.

According to Hartarto, the US is currently coordinating with the US National Security Agency (NSA) to determine the most appropriate timing for the planned meeting between the two heads of state.