TEMPO.CO, Jakarta - The United States has revealed several details in the trade deal struck with Indonesia last week. In an official joint statement released by the White House, the Trump's government said Indonesia will eliminate tariff barriers on about 99 percent U.S. goods.
These goods include various industrial, food, and agricultural products from the U.S. exported to Indonesia.
"The United States will reduce to 19 percent the reciprocal tariffs, as set forth in Executive Order 14257 of April 2, 2025, on originating goods of Indonesia," the White House press release dated July 22, 2025, stated.
The two countries will also negotiate specific commodities not naturally available or produced domestically for additional tariff reductions.
The United States and Indonesia will also agree to remove barriers for U.S. products, including the Domestic Component Level (TKDN) requirements. The agreement also includes the removal of labeling requirements for American products entering Indonesia.
"Indonesia will work to address barriers for U.S. exports, including through the removal of import restrictions or licensing requirements on U.S. remanufactured goods or their parts; the elimination of pre-shipment inspection or verification requirements on imports of U.S. goods; and the adoption and implementation of good regulatory practices," the White House stated.
The United States also requests Indonesia's commitment to addressing barriers affecting digital trade, services, and investments, including providing certainty regarding the transfer of personal data outside the region to the United States.
Indonesia also must commit to protecting internationally recognized labor rights. Some mandatory commitments include Indonesia's obligation to prohibit the import of goods produced through forced or compulsory labor, amend labor laws to ensure workers' rights to freedom of association and collective bargaining, and strengthen labor law enforcement.
"Indonesia will remove restrictions on exports to the United States of industrial commodities, including critical minerals," it said.
Additionally, the United States and Indonesia have agreed on the purchase of aircraft currently valued at US$3.2 billion. Indonesia is also required to purchase agricultural products, including soybeans, wheat, and cotton from the U.S. with a total value of US$4.5 billion. "Purchases of energy products, including liquefied petroleum gas, crude oil, and gasoline, with an estimated value of US$15 billion," it said.
In the coming weeks, the United States and Indonesia will negotiate and finalize the trade agreement, prepare documents for signing, and complete domestic procedures before the agreement takes effect.
Meanwhile, the spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, confirmed the key terms conveyed in the White House's joint statement.
Haryo said the statement was in line with what Indonesia had conveyed. "But all of this will be implemented gradually," Haryo said when contacted by Tempo on Wednesday, July 23, 2025, adding that some adjustments must be made before the imports are conducted.
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