GEOPOLITICS | Indonesia and U.S. Sign Reciprocal Trade Agreement

Indonesia and the United States have signed a reciprocal trade agreement, according to Jin10. The deal, reported by The Wall Street Journal, was finalized on Thursday and involves the removal of tariffs on various Indonesian food and agricultural products by the U.S. While the U.S. will maintain a 19% tariff on most Indonesian goods, it will offer duty-free access for key Indonesian exports such as coconut oil and palm oil. In return, Indonesia will eliminate tariffs on most American goods and accept U.S. regulations on several products. U.S. President Donald Trump had previously mentioned that the framework for this agreement was established in July of last year. In 2024, the trade volume between the U.S. and Indonesia was approximately $38 billion, with Indonesia's exports primarily consisting of agricultural and electronic products.