The agreement is one of the several key points outlined in the agreement on reciprocal trade, jointly issued by the US and Indonesia, and announced by the White House on its official website on Tuesday.
“Indonesia will provide certainty regarding the ability to move personal data out of its territory to the United States through recognition of the United States as a country or jurisdiction that provides adequate data protection under Indonesia’s law,” the White House said in the statement, which was accessed from Jakarta on Wednesday.
The White House added that the United States and Indonesia will finalize commitments on digital trade, services, and investment.
Indonesia has committed to eliminating existing harmonized tariff schedule (HTS) tariff lines on “intangible products,” suspending related requirements on import declarations, and supporting a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization (WTO) immediately and without conditions.
Indonesia will also take effective actions to implement the Joint Initiative on Services Domestic Regulation, including submitting its revised specific commitments for certification by the World Trade Organization (WTO).
The White House said that American companies have sought these digital trade reforms for years.
In addition to the agreement to remove barriers to digital trade, both countries have also agreed on a number of other commitments, including eliminating tariff barriers, breaking down non-tariff barriers for US industrial exports, and expanding market access for US agricultural products by addressing non-tariff barriers.
The two nations will also strengthen rules of origin, align on economic security, improve labor standards, and unlock commercial deals.
The provisions outlined in the trade agreement between Indonesia and the United States are a follow-up to the 19 percent import tariff announced by US President Donald Trump on Indonesian products.
Trump said that the landmark trade deal would provide Americans with market access to Indonesia, which was once considered impossible, and unlock major breakthroughs for America’s manufacturing, agriculture, and digital sectors.
The United States currently runs its fifteenth-largest goods trade deficit with Indonesia. The US’ total goods trade deficit with Indonesia stood at US$17.9 billion in 2024.
Before the deal, Indonesia’s simple average applied tariff was 8 percent, while the US average applied tariff was 3.3 percent.
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Reporter: Kuntum Khaira Riswan
Editor: Azis Kurmala
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