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View all search resultsIndonesia concedes on trade and data for US deal
Indonesia also agreed to remove local content requirements for US firms, recognize US standards for vehicle and medical products, drop onerous licensing on US farm goods while recognizing US regulatory oversight and lift labeling and pre-shipment inspection mandates.
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Containers are stacked on May 22, 2024, at Tanjung Perak Port in Semarang, Central Java. (Antara/Makna Zaezar)
I
ndonesia has agreed to far-reaching regulatory changes to secure a trade deal with the United States, according to a joint statement on a “framework” for the prospective settlement published on the White House website on Tuesday.
In the statement, the two sides vow to “negotiate and finalize” the agreement on reciprocal trade and “undertake domestic formalities” for the agreement to enter into force in the coming weeks.
This comes after US President Donald Trump announced last week that he had agreed with President Prabowo Subianto to reduce an impending import tariff on Indonesian goods shipped to the US in exchange for extensive concessions from Jakarta.
Read also: Domestic concerns loom as businesses cheer on US-RI deal
According to the statement, Indonesia will eliminate tariffs on 99 percent of US goods, including agricultural products, seafood, pharmaceuticals, automotive items and information and communications technology (ICT) equipment.
In return, the US will reduce its threatened “reciprocal tariff” on Indonesian goods from 32 to 19 percent, with possible further cuts for select commodities “not naturally available or domestically produced in the United States”.
In digital trade, Jakarta agreed to allow personal data transfers from Indonesia to the US and eliminate tariffs on intangible products by recognizing the US as having “adequate” data protection.
