Expand Market Access, United States Announces Trade Agreement With Indonesia

JAKARTA - President of the United States (US) Donald Trump officially announced a mutual trade agreement with Indonesia which is said to be a major breakthrough for American exports, especially in the manufacturing, agriculture and digital sectors.

He said this agreement was claimed to open market access which was previously considered impossible for US products in Indonesia.

Under the agreement, Indonesia will pay the United States a reciprocal tariff of 19 percent.

Meanwhile, the main requirements for the US-Indonesian Mutual Trade Agreement include:

Trump insists that this trade deal in the future will benefit workers, exporters, farmers and digital innovators of the United States

"This agreement is a picture and an overview of the victory that will be felt by all Americans," he said in his statement, Wednesday, July 23.

As for in the coming weeks, the United States and Indonesia will commemorate the Balik Timbal Trade Agreement to lock up the benefits for American businesses and workers.

The United States is currently experiencing the fifth largest trade deficit in goods with Indonesia and the total US trade deficit with Indonesia will reach 17.9 billion US dollars by 2024.

Trump added that before this agreement, the average simple rate applied by Indonesia was 8 percent, while the average rate applied by the US was 3.3 percent.