Trump: It is my great honor to announce our trade agreement with Indonesia - Truth Social.

Trump: It is my great honor to announce our trade agreement with Indonesia - Truth Social.

President Donald J. Trump announced a historic trade agreement with Indonesia, aiming to unlock significant market access for American industries and boost bilateral trade. The agreement, known as the "U.S.-Indonesia Agreement on Reciprocal Trade," is set to be finalized in the coming weeks [1].

Under the agreement, Indonesia will eliminate tariff barriers on over 99% of U.S. products, including agricultural products, health products, seafood, and digital technologies. This move will provide unprecedented market access opportunities for American exporters [1]. In return, the U.S. will cut its proposed tariffs on Indonesian imports from 32% to 19%, a significant reduction that will benefit Indonesian industries [2].

The agreement also addresses long-standing non-tariff barriers. Indonesia has committed to exempt U.S. companies and goods from local content requirements, accept U.S. federal motor vehicle safety and emissions standards, and eliminate burdensome certification and labeling requirements for U.S. exports [1]. Additionally, Indonesia will remove import restrictions on U.S. remanufactured goods and their parts, and adopt good regulatory practices to facilitate U.S. exports [1].

In the agriculture sector, Indonesia has agreed to exempt U.S. food and agricultural products from import licensing regimes and provide permanent Fresh Food of Plant Origin (FFPO) designation for U.S. plant products. This will help restore U.S. agricultural exports to Indonesia, which had been hindered by pre-shipment inspections and verifications [1].

The agreement also includes commitments on digital trade, services, and investment. Indonesia has agreed to eliminate existing tariff lines on "intangible products" and suspend related requirements on import declarations. Furthermore, Indonesia will support a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization (WTO) [1].

The U.S.-Indonesia trade deal is part of the Trump administration's broader efforts to address the U.S. goods trade deficit and promote reciprocal trade. Before this agreement, Indonesia's simple average applied tariff was 8%, while the U.S. average applied tariff was 3.3% [1]. The agreement is expected to significantly reduce the U.S. goods trade deficit with Indonesia, which stood at $17.9 billion in 2024 [1].

The agreement also includes commercial deals in the areas of agriculture, aerospace, and energy, which will further increase U.S. exports to Indonesia. The total value of these commercial agreements is $18 billion [2].

In conclusion, the U.S.-Indonesia trade agreement represents a significant step forward in promoting reciprocal trade and boosting bilateral trade. By addressing long-standing tariff and non-tariff barriers, the agreement aims to unlock new market access opportunities for American industries and exporters.

References:
[1] https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-united-states-and-indonesia-reach-historic-trade-deal/
[2] https://www.cryptopolitan.com/indonesia-to-drop-non-tariff-barriers/