JAKARTA (Bernama-Sputnik/RIA Novosti): Indonesia and the United States have agreed to eliminate tariff barriers on over 99 per cent of American goods exported to Indonesia, US Trade Representative Jamieson Greer said.
The mutual trade agreement was signed by Indonesian President Prabowo Subianto and US President Donald Trump in Washington on February 19.
"I look forward to close coordination and engagement with Indonesia on implementation of these high standard commitments," the statement read, reported Sputnik/RIA Novosti.
Greer added that the agreement aims to eliminate trade barriers, promote US economic interests, and strengthen national security.
According to a White House fact sheet, the US will maintain a 19 per cent reciprocal tariff on imports from Indonesia, except for specific goods that will receive zero tariff treatment.
Specifically, the US intends to create a mechanism allowing some Indonesian textile and garment products to receive zero tariff rates, provided they use American cotton and synthetic fibers in production.
Under the agreement, Indonesia plans to purchase approximately US$15 billion worth of US energy resources, US$13.5 billion in commercial aircraft and related aviation services, and over US$4.5 billion in agricultural products.
The parties also reached an investment agreement worth approximately US$33 billion in the US agriculture, aerospace, and energy sectors.
Additionally, Freeport-McMoRan signed a memorandum with the Indonesian side to extend mining licenses and expand operations in the Grasberg mine area in Indonesia's Central Papua province.
The deal is expected to generate up to US$10 billion in annual revenue and strengthen critical mineral supply chains. -- BERNAMA-SPUTNIK/RIA NOVOSTI
