After India, is Indonesia next to clinch a U.S. tariff deal?
Indonesia is poised to finalise a new trade tariff deal with the United States, following India’s recent breakthrough with Washington, as negotiations enter their final stage pending approval by the two countries’ leaders.
Chief Economic Affairs Minister Airlangga Hartarto said talks with the US are essentially complete, with only legal drafting and the scheduling of a meeting between President Prabowo Subianto and US President Donald Trump remaining.
"All negotiations have been completed, with legal drafting reaching 90 percent. We are now waiting for the signing schedule," Airlangga said on February 3, as quoted by local news site Tempo.
The announcement comes moments after Washington agreed to slash reciprocal tariffs on Indian goods from 50% to 18%, easing pressure on Asia’s third-largest economy.
Indonesia is now set to become the next major Asian country to secure tariff relief under the Trump administration.
Airlangga has previously said the U.S. agreed to cut reciprocal tariffs on Indonesian goods from 32% to 19%, supported by import concessions and purchase commitments, though details will only be released after the deal is signed.
The tariff talks began in April 2025 and covered market access, non-tariff barriers, investment and critical minerals cooperation. Once signed, the agreement will be reported to lawmakers in both countries.
Indonesia ran a $16.5 billion trade surplus with the United States in the January to November 2025 period, up from nearly $13 billion in all of 2024, underscoring the economic stakes of the deal.
This story is written and edited by the Global South World team, you can contact us here.
