Indonesia Scores Big in US Trade Agreement—90% Asks Met, Palm Oil Exports Soar
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- Cabinet Secretary Teddy Indra Wijaya hails a US-Indonesia trade pact where 90% of Jakarta’s asks were met, granting duty-free access to 1,819 products and $38.4B in investments.
- Presidents Prabowo and Trump ink deal after intense talks: Indonesia’s palm oil, coffee, and textiles hit US market tariff-free, eyeing 10x textile export growth.
- New bilateral agreement focuses on economics only—zero tariffs both ways, new trade council, and major investments like Boeing buys and Freeport extension.
Cabinet Secretary Teddy Indra Wijaya announced that 90 percent of Indonesia’s proposals have been accommodated in a landmark trade agreement with the United States.
He made the remarks following the deal’s signing by President Prabowo Subianto and US President Donald Trump on the sidelines of the inaugural Board of Peace (BoP) members’ meeting in Washington D.C. on Thursday (Feb. 19).
“After intensive negotiations, 90 percent of Indonesia’s requests were met, granting zero percent tariffs on 1,819 national products in the US market—including key exports like palm oil, coffee, cocoa, and electronic components,” Teddy said via the Cabinet Secretariat (Setkab) in Jakarta on Friday.
Setkab highlighted the rigorous process: Indonesia’s delegation made four trips to Washington D.C., held seven rounds of talks, and conducted over nine in-person and virtual meetings.
The agreement focuses purely on economic matters, steering clear of non-economic clauses on land, geopolitics, or similar issues, with both nations respecting each other’s sovereignty.
Teddy called the zero-tariff access for 1,819 Indonesian products in the US one of the deal’s biggest triumphs.
“Zero tariffs make Indonesian goods more competitive in the US, unlocking export growth and broader market access for local businesses,” read a Setkab statement.
Beyond that, Teddy noted the pact could boost Indonesia’s textile exports by up to tenfold, benefiting around 4 million workers in the national textile sector.
Meanwhile, the government prioritized safeguards for domestic food prices within the cooperation framework.
In reciprocation, Indonesia offered zero tariffs on US agricultural products like soybeans and wheat, aiming to stabilize prices for staples such as tofu, tempeh, and noodles.
Teddy added that the trade deal comes with investment commitments totaling $38.4 billion.
These include plans to buy 50 Boeing aircraft, $15 billion in annual imports of crude oil and gas, a Freeport contract extension to 2061, and an additional $20 billion in investments over the next 20 years.
As part of the reciprocal trade agreement, Indonesia and the US established the Council of Trade and Investment as an economic dialogue forum.
The council will address trade and investment issues, prevent unfair import surges, and maintain balanced trade scales between the two countries.
Through this body, economic disputes will first be resolved via dialogue and coordination.
The government views this pact not just as a trade deal, but as a strategic step toward stronger, mutually beneficial bilateral ties.
Indonesianpost.com | Antara
