ASIATODAY.ID, WASHINGTON — Indonesia and the United States have reached a landmark agreement on the substance of their Agreements on Reciprocal Trade (ART), marking a major breakthrough in bilateral trade relations and a strategic win for Indonesia’s economic diplomacy.
The agreement was finalized following a high-level meeting between Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and U.S. Trade Representative (USTR) Ambassador Jamieson Greer on Monday, December 22, 2025 in Washington, D.C.
The talks were conducted under a direct mandate from President Prabowo Subianto, who instructed the Indonesian delegation to accelerate the completion of the ART framework with the United States.
From Tariff Pressure to Strategic Compromise
Since the United States announced its “Liberation Day” reciprocal tariff policy on April 2, 2025, the Indonesian government has engaged in intensive negotiations and diplomatic outreach to address trade frictions between the two countries. These efforts paid off with the issuance of a Joint Statement on July 22, 2025, reducing Indonesia’s reciprocal tariff rate from 32 percent to 19 percent.
Following the Joint Statement, both sides entered an intensive round of technical negotiations, culminating in a full agreement on all core substantive issues contained in the ART document.
“The key is balance. We conveyed Indonesia’s main concerns while also listening carefully to the U.S. perspective. From there, we found common ground,” Minister Airlangga said.
Market Access and Protection for Indonesia’s Key Exports
Under the reciprocal trade agreement, Indonesia commits to: Expanding market access for U.S. products, Addressing non-tariff barriers, Strengthening cooperation in digital trade and technology, Enhancing collaboration on national security and commercial matters.
In return, the United States has committed to granting tariff exemptions for Indonesia’s key export products that are not produced domestically in the U.S., including: Palm oil, Cocoa, Coffee, Tea, and other strategic commodities.
The agreement is expected to provide a major boost to Indonesia’s export performance and reinforce its role in global supply chains.
Toward a Prabowo–Trump Signing at the White House
Minister Airlangga confirmed that all principal and technical issues in the ART have now been resolved, marking the culmination of negotiations that began in April 2025.
“We have met with Ambassador Jamieson Greer, and thankfully the discussions went very well, allowing both sides to reach a substantive agreement on all issues covered in the ART document,” he said.
Ambassador Greer welcomed the outcome, noting that the meeting—held at the start of the U.S. Christmas holiday—produced what he described as “the best Christmas gift” for both countries, delivering tangible benefits for Indonesia–U.S. economic relations.
Looking ahead, technical teams from Indonesia and the United States are scheduled to reconvene in Washington, D.C., in the second week of January 2026 to conduct legal scrubbing and finalize the document. The process is expected to be completed within one week.
The finalized ART is slated for completion in the third week of January 2026, paving the way for an official signing by President Prabowo Subianto and U.S. President Donald Trump at the White House before the end of January 2026.
“The U.S. side is currently coordinating between the USTR and the National Security Advisor to determine the most appropriate timing for the leaders’ meeting and the signing ceremony,” Minister Airlangga concluded. (AT Network)
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