Kuala Lumpur,El Sky News — The Indonesian government has confirmed a major breakthrough in bilateral trade negotiations with the United States, marking a significant step forward in economic cooperation between the two countries. According to officials, the US has agreed to reduce the reciprocal tariff rate on most Indonesian exports to 19%, down from previously higher levels following strategic negotiations.
Under the agreement, several of Indonesia’s priority export commodities, including palm oil (CPO), coffee, and cocoa, will be granted zero tariff (0%), meaning they can enter the US market without import duties. This exemption is expected to boost Indonesia’s competitiveness in global trade and significantly enhance the value of its agricultural exports.
The trade deal is scheduled to be signed by President Prabowo Subianto and US President Donald Trump, reflecting deepening economic ties and mutual interests in expanding market access. As part of the arrangement, Indonesia has also committed to liberalizing tariffs on goods imported from the US, including industrial and consumer products, opening new opportunities for US exporters.
Government officials have noted that further tariff negotiations could continue, with the possibility of lowering the general 19% rate even further in the future. But for now, the zero-tariff status for key commodities represents a win for Indonesian exporters, especially in the palm oil, coffee, and cocoa sectors.
The finalization of this trade agreement is seen as a positive milestone for Indonesia’s export-oriented economy, and it is expected to stimulate investment and strengthen economic ties between the two nations.
