TEMPO.CO, Jakarta - The United States government has released a joint statement containing the framework of the Reciprocal Trade Agreement that has been agreed upon with the Indonesian government. One of the points mentioned in this agreement framework is about the removal of barriers to digital trade.
In the statement, the U.S. emphasized that both countries will finalize commitments to digital trade, services, and investment. "Indonesia will provide certainty regarding the ability to transfer personal data out of its territory to the United States," the U.S. government wrote in a whitehouse.gov page quoted on Wednesday, July 23, 2025.
Additionally, Indonesia is also committed to removing Harmonized Tariff Schedule (HTS) limits for intangible products and suspending related requirements for import declarations; supporting a permanent moratorium on electronic transmissions in the World Trade Organization (WTO); and taking steps to implement a Joint Initiative on Domestic Service Regulation.
In this agreement, the U.S. will reduce reciprocal tariffs from 32 to 19 percent for products imported from Indonesia. Certain commodities not available in the U.S. will be considered for further tariff reductions.
In return, Indonesia will eliminate tariffs for products from the U.S. "Indonesia will eliminate approximately 99 percent of tariff barriers for a full range of U.S. industrial and U.S. food and agricultural products exported to Indonesia," the U.S. government stated.
Both countries also agreed to remove non-tariff barriers for exports of industrial and agricultural products from the U.S. to Indonesia. Furthermore, there are commercial agreements between U.S. companies and Indonesia that include:
- Purchase of aircraft worth US$3.2 billion
- Purchase of agricultural products including soybeans, wheat, and cotton with a total value of US$4.5 billion
- Purchase of energy products, including LPG, crude oil, and gasoline worth US$15 billion.
According to Susiwijono Moegiarso, Secretary of the Coordinating Ministry for the Economy, the new tariffs from the U.S. are expected to take effect on August 1, 2025. However, specifically for Indonesia, the new reciprocal tariffs have not been implemented while negotiations are ongoing.
"Even today, if we export to America and the goods enter, until August 1, if we have not published a joint statement, we will still be subject to the Most Favored Nation (MFN) plus 10 percent. Only after we officially do it, then we will be subject to MFN plus 19 percent," Susiwijono said in an official statement on Tuesday, July 22, 2025.
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