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View all search resultsRI upends domestic policies to get 19% tariffs in US trade deal
The affected rules include local content requirements, a critical mineral export ban, halal certification and a digital tax moratorium, all of which are intended to support domestic businesses.
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Indonesia President Prabowo Subianto (left) and United States President Donald Trump show the signed trade deal documents on Feb. 19 in Washington, US, as witnessed by US Trade Representative Jamieson Greer. Indonesia and the US finalized a trade deal locking in tariff rates and non-tariff barriers to commerce. (Office of the United States Trade Representative/-)
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ndonesia has surrendered several policies it has maintained for years, ranging from local content requirements, a critical mineral export ban, strict halal certification and a digital tax moratorium stance, in order to secure a 19 percent import tariff to the United States in a recently signed deal that analysts view as lopsided.
The commitment between the two countries was signed by US President Donald Trump and President Prabowo Subianto in Washington, DC, on Thursday, in a document called the “Implementation of the Agreement Toward a NEW GOLDEN AGE for the US-Indonesian Alliance”.
The Agreement of Reciprocal Trade (ART) document itself was signed by US Trade Representative (USTR) Jamieson Greer and Jakarta’s lead negotiator Coordinating Economy Minister Airlangga Hartarto on the same day at the USTR headquarters.
“I thank Indonesian Minister Airlangga Hartarto for his commitment to rebalancing our trade relationship. I look forward to close coordination and engagement with Indonesia on implementation of these high standard commitments,” said Greer in a statement.
Airlangga revealed in a press briefing after the signing that 1,819 Indonesian products would be exempted from import tariffs when shipped to the US, most of them agricultural commodities such as palm oil, coffee, cacao and spices, along with some electronic and aircraft components.
“And, special for Indonesian textile and apparel products, America will also give a 0 percent tariff through the tariff rate quota mechanism,” said Airlangga, meaning Washington would subsequently set a volume quota for textile products shipped in from the archipelago that will become subject to no duties.
Read also: Indonesia, US sign reciprocal tariff agreement
