Airlangga said legal drafting of the agreement is underway, with hopes for a swift completion.
“We expect this stage to be completed soon,” he said in Jakarta.
The tariff exemptions will mainly apply to commodities that Indonesia can produce but the US cannot, and vice versa. Examples include palm oil, cocoa, and chocolate, which will face zero tariffs.
Initially, the US imposed a 32 percent import tariff on Indonesian goods, but after negotiations, including a phone call between the two presidents,the rate was lowered to 19 percent.
Airlangga led an Indonesian delegation to the US to negotiate the tariff reduction.
As part of the agreement, Indonesia committed to purchasing $15 billion in US energy products, $4.5 billion in agricultural goods, and 50 new Boeing aircraft, primarily Boeing 777s.
President Prabowo described the talks as “tough” but ultimately successful, stressing mutual understanding of each country’s interests.
“I spoke with President Trump, and alhamdulillah, after tough negotiations, we reached an agreement,” Prabowo said in Jakarta on July 16, 2025.
He also emphasized that all decisions were carefully considered, prioritizing the protection of Indonesian workers in national economic policies.
This deal marks a significant step in strengthening trade relations between Indonesia and the United States amid global economic uncertainties.
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Translator: Putu Indah, Kuntum Khaira
Editor: Rahmad Nasution
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