Trade Expansion: The United States and Indonesia have finalized a trade agreement aimed at significantly reducing tariffs and opening up new opportunities for American businesses across Southeast Asia.
As part of the deal, Indonesia will eliminate over 99% of tariff and non-tariff barriers on U.S. goods, including industrial, technological, and agricultural products.
In return, the United States will reduce its proposed 32% tariff on Indonesian imports to 19%. However, products suspected of transshipment—re-routing goods to avoid duties—will still face a higher 40% tariff rate.
The agreement also expands market access for American companies. Indonesia will lift export restrictions on key critical minerals such as nickel, copper, and cobalt, which are essential for various high-tech and clean energy sectors.
Additionally, Indonesia has committed to dropping planned tariffs on cross-border data flows. The country will also support the World Trade Organization’s (WTO) moratorium on e-commerce duties, signaling a commitment to digital trade facilitation.
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