The White House announced a reciprocal trade agreement with Indonesia while President Prabowo Subianto was in Washington to attend the first meeting of President Donald Trump’s Board of Peace.
Under the agreement, South-East Asia’s largest economy will eliminate tariffs for 99% of American goods while the United States will maintain tariffs on most Indonesian goods at 19%, the White House said on Thursday.
That is the same rate the US has set for Cambodia and Malaysia.
Indonesia also agreed to address non-tariff barriers to US goods and to remove restrictions on exports to the United States for critical minerals and other industrial commodities, the White House said.
Indonesian and US companies also reached 11 deals this week worth US$38.4bil (RM150bil), including purchases of US soybeans, corn, cotton and wheat, cooperation in critical minerals and oil field recovery, and joint ventures in computer chips.
“We have negotiated very intensively over the last few months, and I think we have reached solid understandings on many issues,” Prabowo told business executives at the US Chamber of Commerce.
A White House statement called it a “great deal” and said it “will help both countries to strengthen economic security, promote economic growth, and thereby continuously lead to global prosperity.”
The agreement was later signed by US Trade Representative Jamieson Greer and his Indonesian counterpart, Airlangga Hartarto.
Airlangga told a news conference from Washington that both governments cast the agreement as marking the start of a “new golden age” in bilateral economic ties and Indonesia will introduce measures designed to keep trade flows secure and prevent misuse of sensitive goods.
The agreement was announced the same day that Prabowo, leader of the world’s most populous Muslim country, reiterated his pledge at the Board of Peace meeting to send 8,000 troops or “more if necessary” for an international stabilisation force in Gaza.
Indonesia was among the first to make a firm commitment to a critical element of Trump’s postwar Gaza reconstruction plan.
“President Prabowo of Indonesia, thank you very much,” Trump said at the Board of Peace meeting.
“It’s a big country you have, and you do a great job.”
Prabowo praised Trump in return.
“We are very optimistic with the leadership of President Trump, this vision of real peace will be achieved,” he said.
“There will be problems, but we will prevail.” — AP
