The White House announced late Thursday it had secured a reciprocal trade agreement with Indonesia that will see the world’s most populous Muslim-majority country eliminate duties on 99% of US goods.
Meanwhile, according to a Trump administration fact sheet, the US will maintain 19% tariffs on most Indonesian goods, in line with rates imposed by Washington on neighboring Cambodia and Malaysia.
The agreement was announced hours after Indonesia President Prabowo Subianto attended the inaugural meeting of President Trump’s Board of Peace, joining representatives from almost 50 other nations as well as the European Union.
“We have negotiated very intensively over the last few months, and I think we have reached solid understandings on many issues,” Prabowo told business executives Wednesday in remarks at the US Chamber of Commerce.
Trump singled out Prabowo for praise after the Indonesian leader committed to sending at least 8,000 troops to form part of an international stabilization force to secure the war-torn Gaza Strip.
“President Prabowo of Indonesia, thank you very much,” Trump said at the Board of Peace meeting. “It’s a big country you have, and you do a great job.”
Prabowo praised Trump in return, saying: “We are very optimistic with the leadership of President Trump, this vision of real peace will be achieved. There will be problems, but we will prevail.”
Indonesian companies also agreed this week to buy 1 million tons of soybeans, 1.6 million tons of corn and 93,000 tons of cotton from the US. They also pledged to buy up to 5 million tons of American wheat by 2030.
The countries agreed to cooperate on critical minerals, though details were not immediately available.
This past July, Trump warned Jakarta that the US would impose 32% tariffs on Indonesia if an agreement was not reached. Days later, the president announced that a tentative deal had been agreed, saying that the island nation “has some great products.
“One of the things, as you know, they’re known for is very high-quality copper, which we will be using.”
Indonesia is the world’s third largest exporter of copper ore and is a major manufacturer of insulated wiring.
Indonesia is home to nearly 290 million people and primarily exports textiles, agricultural products including palm oil and spices, and electronics such as smartphones.
Indonesia also has the world’s largest known reserves of nickel, which has important industrial uses, including for strengthening and rustproofing steel alloys and making batteries.
With reporting by Steven Nelson and Post wires.
