The United States and Indonesia have reached a consensus on the reciprocal trade agreement.
On Monday (December 22nd) local time, the Indonesian government and the US government completed in-depth negotiations on "reciprocal tariffs" in Washington, led by Indonesian Minister of Economic Coordination Elangka Hartato and US Trade Representative Jamison Greer.
On Monday (December 22nd) local time, Indonesian Minister of Economic Coordination Elangka Hartato and US Trade Representative Jamison Greer held a meeting in Washington.
On Tuesday (December 23rd), Elangka stated at a press conference in Washington that the months-long negotiations starting from April 2025 finally reached consensus on the substantive content of the "reciprocal trade agreement". He said: "We have held talks with Greer and the progress has been very smooth. Both sides have reached a substantive agreement on the issues covered by the reciprocal trade documents."
Elangka pointed out that based on the results of this negotiation, the US and Indonesia agreed to finalize all agreement documents between January 12th and 19th, 2026. Then, at the end of January 2026, the two heads of state, President Prabowo of Indonesia and President Trump of the United States, will personally sign the "reciprocal tariffs" agreement documents. He said: "Currently, the US is coordinating the timing of the meeting between the two heads of state."
During the negotiations, Elangka disclosed that the US government requested Indonesia to open access to key mineral resources. "The US expects to obtain access to key minerals." He emphasized that the US also continuously urged Indonesia to fulfill its commitment to relax policy regulations that hinder bilateral trade activities. "In the previous joint statement, Indonesia has promised to open market access for the United States and solve non-tariff barriers that hinder the cooperation between the two countries." In this in-depth negotiation, the US promised to grant tariff exemptions to Indonesian advantageous export products that it cannot produce, including palm oil, cocoa, coffee, and tea, etc.
Elangka clearly stated: "Indonesia has obtained tariff exemptions for products such as palm oil and cocoa. It is worth noting that since April 2nd, 2025, when the US announced the implementation of the so-called 'reciprocal tariffs', the Indonesian government has been conducting intensive consultations and communication with the US government to resolve various trade issues between the two countries. The joint statement issued on July 22nd, 2025 announced that the tariffs would be reduced from 32% to 19%. After the joint statement was issued, the two countries continued to conduct intensive negotiations to complete the trade agreement. Therefore, these advantageous products of Indonesia will be excluded from the taxation scope that is scheduled to be officially signed at the end of January 2026."
Alrancar said: "The key lies in balance. We have clarified the core concerns of Indonesia's interests, while also listening to the US perspective and seeking a middle ground." The Indonesian government claimed that the "equivalent tariffs" agreement reached with the US would be beneficial to the country's manufacturing industry and its practitioners.
Alrancar pointed out that one of the key agreements reached after the negotiations was that the US agreed to exempt tariffs on Indonesia's advantageous export commodities such as palm oil, coffee, cocoa, and tea (the tariff was reduced from 32% to 19% on July 22, 2025). He said: "This is undoubtedly good news for the Indonesian industries directly affected by the tariff policy, especially those involving labor-intensive industries, which employ 5 million workers and are of great strategic significance to Indonesia."
Meanwhile, US Trade Representative Grier praised the talks during the initial days of the US Christmas holiday and expressed appreciation for the positive spirit of both sides accelerating the agreement's conclusion. He said: "The outcome of this negotiation is the most wonderful Christmas gift and will bring common interests to both countries."
After the agreement was reached, the technical teams from Indonesia and the US plan to continue holding technical meetings in Washington in the second week of January 2026, conducting legal reviews and document clean-up work, and are expected to complete it within a week.
It is reported that previously, the US-Indonesia trade negotiations faced a risk of breakdown, mainly because Indonesia was accused of "backtracking" on core commitments, demanding to modify or cancel the agreed non-tariff barriers and digital trade measures, which greatly displeased the US, as they believed this undermined the binding force of the agreement.