Indonesia sends top minister to US to finalise trade deal

Talks focus on palm oil exemptions and framework for increased US exports, following tariff reduction from 32 per cent to 19 per cent.

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WASHINGTON: Indonesia is deploying a top economic minister to the United States to finalise the details of a trade deal announced in July, a ministry spokesman said Thursday (Dec 18).

Washington has slashed the tariff faced by Southeast Asia's biggest economy from 32 per cent to 19 per cent, in an agreement hailed by President Prabowo Subianto as a "new era" of trade relations between the two countries.

Discussions over the details of the deal have been ongoing since the July announcement, with Jakarta pushing for a tariff exemption for some of its export products, including crude palm oil (CPO).

Coordinating Economic Minister Airlangga Hartarto, who leads Indonesia's negotiation team, is "currently heading to the US", spokesman Haryo Limanseto told AFP.

Airlangga is due to finalise the July deal with officials from the Office of the United States Trade Representative (USTR), the spokesman said.

Airlangga previously told AFP that CPO, one of Indonesia's key exports, will be a focus of the talks, noting that Washington had lowered tariffs on agricultural products such as coffee.

"The executive order already includes (exemption) of commodities such as coffee, cacao, and so on. Only CPO and its derivatives are left," to be negotiated, he said.

Under the framework agreement announced in July, Indonesia has also committed to spending billions to increase energy, agriculture, and aircraft imports from the United States.

Airlangga said this week that the deal was hoped to be signed by Prabowo and US President Donald Trump next year, Indonesian media reported.

Data from the USTR shows Washington's goods trade deficit with Indonesia was US$17.9 billion in 2024, up 5.4 per cent from the year before.

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