Indonesia, US finalize bilateral trade agreement

The White House on February 19 announced that the U.S. and Indonesia have officially concluded a bilateral trade agreement, setting reciprocal tariff rates and non-tariff barriers on goods traded between the two countries.

Under the terms of the agreement, first announced in July last year, the U.S. will impose a 19% tariff on goods imported from Indonesia. Previously, the Southeast Asian nation had faced the prospect of tariffs of up to 32%.

In return, Indonesia has pledged to waive local content requirements for U.S. companies, while addressing and preventing barriers affecting U.S. agricultural exports to the country.

Indonesia, U.S. sign agreements worth $38.4 billion

Previously, on February 18, Indonesian President Prabowo Subianto witnessed the signing of 11 agreements worth $38.4 billion between Indonesian and US companies at a business summit in Washington D.C.

The signing of the deals took place during a roundtable session hosted by the US-ASEAN Business Council, covering mining and downstream processing, energy, agribusiness, textiles and garments, furniture manufacturing, and advanced technology.

The Indonesian government said that the agricultural portion of these pledges was worth $2.5 billion. The industrial sector MoUs reached $35.9 billion in value, including the cooperation on semiconductors and strategic industrial materials.

According to the Cabinet Secretariat of Indonesia, the pacts reflects the international businesses’ high trust in the country’s economic future. They also strengthen Indonesia’s position as a strategic partner in the Indo-Pacific region.

The Government will continue to monitor the concrete deliverables of the agreements’ implementation for the national economy, as well as ensure international collaboration.