Cabinet Secretary: 90 Per Cent of Indonesia's Proposals Accepted, 1,819 Products Granted Zero US Tariffs
Jakarta (ANTARA) — Cabinet Secretary Teddy Indra Wijaya has stated that 90 per cent of Indonesia’s proposals were accommodated in the trade agreement between Indonesia and the United States.
The statement was made following the signing of the bilateral trade pact by President Prabowo Subianto and President Donald Trump on the sidelines of the inaugural meeting of the Board of Peace in Washington DC on Thursday (19 February).
“Through intensive negotiations, with 90 per cent of Indonesia’s proposals fulfilled, a total of 1,819 national products have been granted zero per cent tariffs in the US market, including flagship commodities such as palm oil, coffee, cocoa, and electronic components,” he said via the Cabinet Secretariat in Jakarta on Friday.
The Cabinet Secretariat noted that the Indonesian delegation undertook intensive negotiations involving four visits to Washington DC, seven rounds of talks, and more than nine direct and virtual meetings.
The agreement was described as purely economic in scope, with no non-economic provisions relating to land, geopolitics, or other matters. Both parties respected each other’s sovereignty.
According to Teddy, one of the most significant achievements in the historic agreement was the granting of zero per cent tariffs for 1,819 national products in the US market.
“With zero per cent tariffs, Indonesian products become more competitive in the US market, opening opportunities for increased exports and expanded market access for national businesses,” the official Cabinet Secretariat statement read.
Beyond that, Teddy said the agreement also opens the possibility of increasing Indonesian textile exports by up to tenfold, with potential benefits for approximately four million national textile industry workers.
On another front, the government has also ensured that protection of domestic food prices remains a priority within the cooperation framework.
As part of the reciprocal arrangement, Indonesia is granting zero per cent tariffs on US agricultural products, namely soybeans and wheat. This policy aims to maintain the stability of staple food prices domestically, including for tofu, tempeh, and noodles.
Teddy further stated that the trade agreement was accompanied by total investment commitments worth US$38.4 billion.
These investments target planned purchases of 50 Boeing aircraft, oil and crude gas imports worth US$15 billion per year, the extension of Freeport’s contract until 2061, and an additional US$20 billion in investment over the next 20 years.
As part of the reciprocal trade agreement, Indonesia and the US have established a Council of Trade and Investment as a forum for economic dialogue.
The forum will address trade and investment issues, anticipate abnormal import surges, and maintain a balanced trade ledger between the two countries. Through this council, all economic matters will first be resolved through dialogue and coordination.
The government considers this agreement not merely a trade deal but a strategic step towards strengthening a more balanced and mutually beneficial bilateral relationship.