Indonesian Political, Business & Finance News

Indonesia-US Reciprocal Trade Agreement Set to Be Signed by Prabowo

| | Source: EN.TEMPO.CO | Trade
Indonesia-US Reciprocal Trade Agreement Set to Be Signed by Prabowo
Image: EN.TEMPO.CO

Indonesia’s President Prabowo Subianto and US President Donald Trump are set to sign the final document of their reciprocal trade negotiations, known as the Agreement on Reciprocal Trade (ART), during Prabowo’s visit to the United States.

“Around that date, the signing of the Agreement on Reciprocal Trade (ART) is planned to take place,” said Haryo Limanseto, spokesperson for Indonesia’s Coordinating Ministry for Economic Affairs.

Details of the Trade Deal

Several substantive points in the negotiation document have been agreed upon and are currently undergoing legal drafting.

Under the framework of the agreement, Indonesia has committed to eliminating import duties on most US-origin products.

In return, the United States will reduce reciprocal tariffs on Indonesian goods from 32 per cent to 19 per cent.

Washington has also agreed to provide tariff exemptions for several Indonesian export commodities, including crude palm oil (CPO), coffee, and cocoa. The exemptions will apply to products that cannot be domestically produced in the United States.

The substance of the ART agreement was reached following an official meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and US Trade Representative Ambassador Jamieson Greer on 22 December 2025 in Washington, DC.

The Agreement on Reciprocal Trade is designed as a mutual trade contract aimed at expanding market access for both countries. In addition to the signing ceremony between Prabowo and Trump, the visit is expected to facilitate a business and investment forum bringing together entrepreneurs from Indonesia and the United States.

According to the State Secretariat’s official website, Prabowo and a limited delegation departed from Halim Perdanakusuma Air Force Base in Jakarta on 16 February.

A day earlier, the president held a preparatory meeting at Hambalang with Airlangga, Finance Minister Purbaya Yudhi Sadewa, State Secretary Prasetyo Hadi, and Investment and Industrial Estates Minister Rosan Roeslani.

Prabowo emphasised the importance of ensuring Indonesia maintains a strong and measured position ahead of several international engagements, including his meeting with the US president. He directed the government to secure a solid bargaining position while safeguarding national interests.

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