December 23, 2025 | 03:45 pm
TEMPO.CO, Jakarta - Coordinating Minister for the Economy Airlangga Hartarto announced that Indonesia and the United States have agreed on the terms of the tariff agreement, which is expected to be finalized in early 2026. Airlangga claimed that the agreement would benefit both countries equally.
"There are no Indonesian policies restricted by this agreement. Surely, this agreement is commercial and strategic in nature and beneficial to the economic interests of both countries equally," said Airlangga in a virtual press conference from Washington, D.C., the United States, on Tuesday, December 23rd, 2025, Jakarta time.
According to Airlangga, there are no longer any factors that could hinder the signing of the Agreement on Reciprocal Tariff (ART). He mentioned that the dynamics in the discussions with the United States Trade Representative (USTR) are related to language harmonization. Additionally, Airlangga stated that Indonesia and the U.S. are not discussing any other agreements outside of the trade deal.
Airlangga stated that this agreement follows a joint statement by the two countries released on July 22, where the import tariffs for Indonesian products were reduced from 32 percent to 19 percent. He mentioned that the U.S. has granted tariff exemptions for several Indonesian flagship products, such as palm oil, coffee, tea, and cocoa.
The former Chair of the Golkar Party explained that Indonesia's technical team will go to the U.S. again in the second week of January 2026 to continue the legal drafting. "Once all the technical processes are completed, it is expected that before the end of this month, documents will be prepared for the official signing by Mr. President Prabowo and U.S. President Mr. Donald Trump," said Airlangga.
Previously, several international media outlets reported that the Indonesia-U.S. bilateral negotiations were at risk of being canceled.
Ilona Estherina contributed to this article
Read: Prabowo, Trump Set to Seal Indonesia-US Tariff Pact in January 2026
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