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Govt to sign trade deal with US in January after clearing final hurdles

The agreement, which is expected to be signed by President Prabowo Subianto and his United States counterpart Donald Trump, will not constrain Jakarta’s domestic policy space and will deliver “balanced economic benefits” for both countries, according to Office of the Coordinating Economy Minister Airlangga Hartarto.

Ruth Dea Juwita (The Jakarta Post)
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Tue, December 23, 2025 Published on Dec. 23, 2025 Published on 2025-12-23T17:26:41+07:00

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Office of the Coordinating Economy Minister Airlangga Hartarto (right) shakes hand with United States Trade Representative Jamieson Greer on Dec. 23, 2025 following a meeting at the Office of the USTR in Washington, DC. Office of the Coordinating Economy Minister Airlangga Hartarto (right) shakes hand with United States Trade Representative Jamieson Greer on Dec. 23, 2025 following a meeting at the Office of the USTR in Washington, DC. (Courtesy of/Coordinating Economy Ministry office)

I

ndonesia is preparing to seal a trade agreement with the United States by the end of January after the two sides reportedly resolved all substantial issues in negotiations earlier seen at risk of stalling.

The Agreement on Reciprocal Trade, which is expected to be signed by President Prabowo Subianto and his United States counterpart Donald Trump, will not constrain Jakarta’s domestic policy space and is designed to deliver “balanced economic benefits” for both countries, according to Office of the Coordinating Economy Minister Airlangga Hartarto.

“No Indonesian policies are restricted by this agreement […], which is purely commercial and strategic in nature,” Airlangga told an online press briefing on Tuesday, emphasizing the pact would contain no provision limiting Jakarta’s ability to pursue trade deals with other countries.

Airlangga, who leads Indonesia’s negotiating team, was speaking after a meeting with US Trade Representative Jamieson Greer in Washington, DC on Monday local time.

Read also: Trade deal with US ‘still on’ despite reported rift

Airlangga said he and Greer welcomed progress in resolving “crucial issues” in the latest round of talks, with negotiations centered on safeguarding mutual interests while ensuring Indonesia’s key concerns “were clearly conveyed”.

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The US wanted access to Indonesia's critical minerals and had agreed to grant import tariff exemptions for key Indonesian export commodities like palm oil, tea and coffee, he added.

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