Jakarta received tariff exemptions for palm oil and other commodities as part of a trade pact with the US that reduced U.S. duties on Southeast Asia’s largest economy to 19% from 32%.

The agreement was signed in Washington by Indonesia’s senior economic minister Airlangga Hartarto and U.S. Trade Representative Jamieson Greer after months of negotiations. Airlangga called the deal a “win-win” for both countries, stating that it respects their sovereignty.
Around 9% of Indonesia’s exports were palm oil, a crucial exemption.

Airlangga claimed Indonesian coffee, cocoa, rubber, and spices would be tariff-free. The 19% rate matches U.S. deals with Malaysia, Cambodia, Thailand, and the Philippines. Vietnam’s 20% rate is slightly higher.

Under the deal, Indonesia will restrict foreign-owned mineral processing plants’ ‘excess production’ by enforcing mining quotas. These include nickel, cobalt, bauxite, copper, and manganese.

Jakarta will also punish foreign-owned enterprises operating in its jurisdiction that hinder U.S. trade.
Indonesia will help U.S. corporations invest in crucial minerals and energy resources and expand its rare-earth sector.

Airlangga said the arrangement will take effect 90 days after both sides finish legal procedures, although adjustments may be made if both sides agree.

President Prabowo Subianto traveled to Washington for the deal and Trump’s Board of Peace’s first leaders’ meeting.
Prabowo and Trump signed “Implementation of the Agreement Toward a NEW GOLDEN AGE for the U.S.-Indonesian Alliance”