Archive · 23 Dec 2025
Indonesia and US near trade deal completion
Indonesia and the United States are about to finish a big trade agreement.
They have agreed on all the important parts and will sign it soon.
This deal will help both countries by making it easier to trade things like coffee, cocoa, and tea from Indonesia, and American products like planes and farm supplies.
It will also help Indonesia's currency and create jobs.
The agreement is expected to be signed by the presidents of both countries in late January.
Indonesia and the US have finalized all essential matters in their trade negotiations.
The agreement is expected to be signed by late January by Presidents Prabowo Subianto and Donald Trump.
The deal will remove tariffs on key Indonesian commodities and increase US access to Indonesian mineral resources.
Indonesia will lower tariffs on most American goods and commit to purchasing $19 billion in US products.
The agreement affects labour-intensive sectors employing around five million Indonesians.
- Who
- Indonesia and the United States
- What
- Finalizing a landmark trade deal
- When
- Expected to be signed by late January
- Where
- Washington, D.C.
- Why
- To strengthen economic ties, secure tariff relief, and deepen commercial relations
Indonesian Perspective
US Perspective
Trade Surplus
Indonesian Perspective
Indonesia benefits from a significant non-oil trade surplus with the US, amounting to $17 billion last year.
US Perspective
The US gains increased access to Indonesian mineral resources and markets for American goods.
Tariff Waivers
Indonesian Perspective
Indonesia secures tariff relief for key exports like coffee, cocoa, and tea.
US Perspective
The US waives tariffs on Indonesian commodities to strengthen economic ties and support American firms.
- Expected Signing Date
- Late January
- Key Exports from Indonesia
- Electronics, footwear, garments, palm oil, fishery products, coffee, cocoa, tea
- US Trade Surplus
- $17 billion (non-oil trade surplus for Indonesia in 2023)
- Indonesian Commitment
- $19 billion in US products, including agricultural supplies and Boeing aircraft
- Affected Sectors
- Labour-intensive sectors employing around five million Indonesians
- Market Reaction
- Rupiah and government bond yields stable, Jakarta stock index fell marginally by 0.3%
- Rupiah Performance
- Weakened by nearly 4% this year, one of Asia’s least performing currencies