An Indonesian minister has expressed confidence that the new trade agreement with the United States will benefit both countries.
Under the deal, the US will impose a 19-percent tariff on goods imported from Indonesia — down from the previous 32 percent — while US products will be allowed to enter Indonesia duty-free.
"In my view, this deal is a fair compromise that is mutually beneficial for both parties," said Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman on Friday.
He welcomed the tariff reduction, noting that it was achieved through lengthy and challenging bilateral negotiations.
While the lower tariff favors Indonesian exports, Maman stressed the importance of quickly implementing measures to protect local businesses from a potential influx of US goods.
To that end, he emphasized that his ministry remains committed to supporting MSMEs by simplifying permit processes, expanding access to financing, reviewing regulations, and increasing the market reach of MSME products.
"We cannot afford to focus solely on boosting exports while neglecting domestic market demand, as that would instead give an advantage to imported products," he said.
US President Donald Trump earlier posted on Truth Social that he and President Prabowo Subianto had reached a "landmark deal."
"(Under the deal) Indonesia will pay the United States a 19-percent tariff on all goods they export to us," he wrote. "If there is any transshipment from a higher-tariff country, then that tariff will be added onto what Indonesia is paying."
Trump added that Indonesia has agreed to ensure US products are exempt from tariff and non-tariff barriers.
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Translator: Ahmad M, Tegar Nurfitra
Editor: Anton Santoso
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