Negotiations between Indonesia and the United States regarding reciprocal tariffs are nearing completion, with a signing ceremony anticipated before the end of January. President Prabowo Subianto and US President Donald Trump are expected to sign the final Agreement on Reciprocal Tariff (ART) once the legal drafting process is finalized.
Progress in Washington, D.C.
According to State Secretary Minister Prasetyo Hadi, negotiation teams from both countries conducted verification and legal drafting in Washington, D.C. from January 12 to 19. This period was specifically dedicated to formally incorporating previously agreed-upon points into the document. Further meetings are planned to discuss detailed provisions of the agreement.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the major issues forming the substance of the ART have already been agreed upon. Hartarto met with US Trade Representative (USTR) Ambassador Jamieson Greer in Washington, D.C. during the final week of December 2025 to advance these negotiations.
Reciprocal Commitments
Indonesia has committed to opening market access for US products, addressing non-tariff barriers, and strengthening cooperation in areas including digital trade, technology, and national security. In return, the United States has committed to granting tariff exemptions for key Indonesian exports, including palm oil, cocoa, coffee, tea, and other strategic commodities not produced domestically in the US.
The final phase of the ART is scheduled for the third week of January 2026, with the goal of finalizing the agreement for signature by the end of the month. Throughout the process, Indonesia will continue to negotiate to safeguard its national interests, according to Minister Hadi.
Frequently Asked Questions
What is the Agreement on Reciprocal Tariff (ART)?
The ART is the final document outlining the agreement between Indonesia and the United States regarding reciprocal tariffs, as stated by State Secretary Minister Prasetyo Hadi.
When did negotiations on the ART begin?
Negotiations have been ongoing, with a key meeting between Coordinating Minister Airlangga Hartarto and US Trade Representative Ambassador Jamieson Greer taking place in the final week of December 2025.
What products will benefit from the US tariff exemptions?
The United States has committed to granting tariff exemptions for several of Indonesia’s key export products, including palm oil, cocoa, coffee, tea, and other strategic commodities.
What impact could this agreement have on the broader economic relationship between Indonesia and the United States?
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