The trade framework that the U.S. has secured with Indonesia includes commitments to streamline U.S. agri-food exports and boost purchases of several U.S. commodities, the White House said on Tuesday.
A joint statement says Indonesia has committed to eliminating almost all tariffs on U.S. products. The U.S., meanwhile, will keep 19% tariffs on Indonesian imports, as President Donald Trump said in a Truth Social post last week.
As part of the arrangement, Indonesia will buy around $4.5 billion of soybeans, soybean meal, wheat and cotton, the statement said, as part of a series of “forthcoming commercial deals.”
The framework also includes commitments to “address and prevent barriers to U.S. agricultural products in the Indonesian market,” according to a White House fact sheet.
The Indonesian government will exempt U.S. food and agricultural products from Indonesia’s import licensing regimes and eliminate pre-shipment inspections or verification for U.S. agricultural exports, the fact sheet says. It will also provide permanent recognition for U.S. plant products under Indonesia’s Fresh Food of Plant Origin scheme.
The framework also includes less-defined commitments, however. Indonesia will ensure “transparency and fairness” in its geographical indications regime, the fact sheet reads. The sheet says Indonesia has also agreed to recognize “U.S. regulatory oversight,” which includes “listing of all U.S. meat, poultry, and dairy facilities and accepting certificates issued by U.S. regulatory authorities.”
Further, both sides will work together to craft tighter rules of origin to prevent goods with large amounts of foreign content from accessing the lower tariff rates, and Indonesia will implement an import ban on products made with forced labor and ease restrictions on worker freedom of association and collective bargaining.
“Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods,” Trump said in a statement posted to Truth Social on Tuesday. “This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”
Indonesia bought almost $3 billion of U.S. agricultural products in 2024, according to USDA data, with soybeans accounting for more than a third of those exports. The country also bought more than $300 million in U.S. dairy products and over $250 million of distillers grains and other feeds and meals.
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U.S. Trade Representative Jamieson Greer said in a statement that the deal would deliver “expansive market access.”
“American producers, who have long faced high tariffs and burdensome requirements, will receive unprecedented access to Indonesia’s market and greater certainty for the digital services sector,” Greer said, referring to pledges from the country to eliminate duties on “intangible” products, provide greater certainty for firms moving data out of the country, and support a permanent moratorium on duties on electronic transmissions at the World Trade Organization.
The same day as the White House unveiled the Indonesia agreement, the president touted a similar agreement with the Philippines which, Trump said, would eliminate tariffs on U.S. exports while leaving a 19% tariff on imports. Trump previously announced a comparable arrangement with Vietnam, but no further details on that agreement – which Trump announced before the Indonesia pact – have been publicly released.
The Indonesia arrangement is only the second pact that the White House has provided additional details on, the first being a framework with the United Kingdom.
Multiple Republican lawmakers welcomed the new details of the arrangement.
“This new deal with Indonesia is another big win,” House Ways and Means Committee Chair Jason Smith, R-Mo., said in a statement. “Indonesia’s commitment to pull down barriers to our agricultural products, to eliminate red tape on our automobile exports, and expand access to critical minerals, is a direct result of President Trump delivering on his promise to put America first.”
Meanwhile, Rep. Adrian Smith, R-Neb., who chairs the Ways and Means trade subcommittee touted the administration’s ability to “strike meaningful deals.”
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