Indonesia Will Remove Tariffs On 99 Percent Of US Products

Illustration: Workers unload containers at Tanjung Priok Port, North Jakarta/DOC BETWEEN PHOTO/Dhemas Reviyanto/wsj.

JAKARTA - Indonesia will remove tariff barriers preferentially to more than 99 percent of products from the United States (US) which is an effort to realize reciprocal trade for the two countries.

Efforts to remove these tariff barriers are one of the provisions listed in the Balik Timbal Trade Agreement (Agreement on Reciprocal Trade) between Indonesia and America, as stated on the official White House website.

"Indonesia will preferentially remove tariff barriers to more than 99 percent of US products exported to Indonesia in all sectors, including all agricultural products, health products, seafood, information and communication technology, automotive products, and chemicals," the White House said in a statement as quoted by ANTARA, Wednesday, July 23.

The White House wrote the move would open commercial-valued market access to various US export products, as well as support the creation of high-quality employment opportunities in the United States.

In addition to the agreement to remove tariff barriers, the two countries also agreed on seven other provisions, namely removing non-tariff barriers to US industrial exports, removing non-tariff barriers to US agricultural products through handling non-tariff barriers, and strengthening regulations on the origin of goods.

The two countries will also remove barriers to digital trade, align economic security, increase employment standards, and reach commercial agreements.

The Balikbal Trade Agreement will be formalized in the next few weeks, in order to secure benefits for American business actors and workers, the White House said.

President Trump has presented a visionary and decisive trade deal that will benefit workers, exporters, farmers and perpetrators of American digital innovation this deal is a tangible picture of the victory that all Americans will feel, said the White House.

Currently, the United States has recorded the deficit in the 15th largest trade balance with Indonesia. The total trade deficit in US goods with Indonesia reached 17.9 billion US dollars (around 286.4 trillion rupiah) in 2024.

Prior to this agreement, the average tariff imposed by Indonesia was 8 percent, while the average rate imposed by the US was 3.3 percent.