Joint statement On Framework
for United States-Indonesia Agreement on Reciprocal Trade
·
U.S.–Indonesia
Framework for Reciprocal Trade Agreement (22 July 2025)
The United States and Indonesia
have agreed on a Framework
for an Agreement on Reciprocal Trade, aiming to significantly
expand market access and deepen bilateral trade relations. This new deal builds
on the 1996 U.S.-Indonesia
Trade and Investment Framework Agreement and marks a major step
toward freer, fairer trade.
·
Indonesia: Will eliminate ~99% of tariffs on U.S.
industrial, food, and agricultural exports.
·
U.S.: Will apply a 19% tariff on goods from
Indonesia (per Executive Order 14257) and consider further reductions on
select commodities not produced domestically.
·
Both
countries will negotiate facilitative rules of origin to ensure benefits go
primarily to U.S. and Indonesian producers.
Indonesia
will:
·
Remove
local content requirements for U.S. goods.
·
Accept
U.S. safety and emissions standards for vehicles.
·
Recognize
FDA approvals for medical devices/pharma.
·
Ease
cosmetic labeling and remove other regulatory
burdens.
·
Resolve
key IPR issues
flagged in USTR’s Special 301
Report.
·
Exempt
U.S. food/agri products from import licensing regimes.
·
Provide
Fresh Food of Plant Origin
(FFPO) status for all applicable U.S. plant goods.
·
Recognize
U.S. regulatory certificates for meat, dairy, poultry.
·
Allow cross-border data transfers.
·
Eliminate
tariffs on intangible
products.
·
Join
WTO initiatives on digital trade and services
regulation.
·
Support
a global moratorium
on digital customs duties.
·
Indonesia
will:
o Join the Global Forum on Steel Excess Capacity.
o Prohibit import of goods made with forced labor.
o Strengthen labor laws on association and
bargaining rights.
o Improve environmental enforcement, forest
governance, and implement the WTO
Fisheries Subsidies Agreement.
·
Remove
restrictions on exports to U.S. of critical
minerals.
·
Collaborate
on supply chain
resilience, innovation, export controls, and curbing duty evasion.
·
$3.2B
in aircraft
procurement.
·
$4.5B
in U.S. agriculture
imports (soy, wheat, cotton).
·
$15B
in energy imports
(LPG, crude oil, gasoline).
·
Both
nations will finalize
the agreement in the coming weeks.
·
Domestic
legal and formal processes will follow to bring the agreement into force.
This framework sets the
stage for deeper economic
ties and reflects a broader U.S. strategy to enhance regional
engagement in Southeast Asia.
Today
(22.07.2025), the United States of America (the United States) and the Republic
of Indonesia (Indonesia) agreed to a Framework for negotiating an Agreement
on Reciprocal Trade to strengthen our bilateral economic relationship, which
will provide both countries’ exporters unprecedented access to each other’s markets. The Agreement on Reciprocal Trade will build upon
our longstanding economic relationship, including the U.S.-Indonesia Trade and Investment
Framework Agreement, signed on July 16, 1996.
Key terms of the
Agreement on Reciprocal Trade between the United States and Indonesia will include:
·
Indonesia will eliminate approximately 99 percent of
tariff barriers for a full range of U.S. industrial and U.S. food and agricultural
products exported to Indonesia.
·
The United States will reduce to 19 percent the reciprocal
tariffs, as set forth in Executive Order 14257 of April 2, 2025, on originating
goods of Indonesia, and may also identify certain commodities that are not naturally
available or domestically produced in the United States for a further reduction
in the reciprocal tariff rate.
·
The United States and Indonesia will negotiate facilitative
rules of origin that ensure that the benefits of the agreement accrue primarily
to the United States and Indonesia.
·
The United States and Indonesia will work together to
address Indonesia’s non-tariff barriers that affect bilateral trade and investment
in priority areas, including exempting U.S. companies and originating goods from
local content requirements; accepting vehicles built to U.S. federal motor vehicle
safety and emissions standards; accepting FDA certificates and prior marketing authorizations
for medical devices and pharmaceuticals; removing certain labeling
requirements; exempting U.S. exports of cosmetics, medical devices, and other manufactured
goods from certain requirements; taking steps to resolve many long-standing intellectual
property issues identified in USTR’s Special 301 Report; and addressing U.S. concerns
with conformity assessment procedures. Indonesia
will work to address barriers for U.S. exports, including through the removal of
import restrictions or licensing requirements on U.S. remanufactured goods or their
parts; the elimination of pre-shipment inspection or verification requirements on
imports of U.S. goods; and the adoption and implementation of good regulatory practices.
·
The United States and Indonesia have also committed
to address and prevent barriers to U.S. food and agricultural products in the Indonesian
market, including exempting U.S. food and agricultural products from all import
licensing regimes, including commodity balance requirements; ensuring transparency
and fairness with respect to geographical indications; providing permanent Fresh
Food of Plant Origin (FFPO) designation for all applicable U.S. plant products;
and recognizing U.S. regulatory oversight, including listing of all U.S. meat, poultry,
and dairy facilities and accepting certificates issued by U.S. regulatory authorities.
·
Indonesia has committed to address barriers impacting
digital trade, services, and investment.
Indonesia will provide certainty regarding the ability to transfer personal
data out of its territory to the United States.
Indonesia has committed to eliminate existing HTS tariff lines on “intangible
products” and suspend related requirements on import declarations; to support a
permanent moratorium on customs duties on electronic transmissions at the WTO immediately
and without conditions; and to take effective actions to implement the Joint Initiative
on Services Domestic Regulation, including submitting its revised Specific Commitments
for certification by the World Trade Organization (WTO).
·
Indonesia commits to join the Global Forum on Steel
Excess Capacity and take effective actions to address global excess capacity in
the steel sector and its impacts.
·
Indonesia commits to protecting internationally recognized
labor rights. Indonesia
will, among other commitments, adopt and implement a prohibition on the importation
of goods produced by forced or compulsory labor; amend
its labor laws to ensure that workers’ rights to freedom
of association and collective bargaining are fully protected; and strengthen enforcement
of its labor laws.
·
Indonesia commits to adopt and maintain high levels
of environmental protection and to effectively enforce its environmental laws, including
by taking measures to improve forest sector governance and combat trade in illegally
harvested forest products; encourage a more resource efficient economy; accept and
fully implement the WTO Agreement on Fisheries Subsidies; and combat illegal, unreported,
and unregulated fishing and illegal wildlife trade.
·
Indonesia will remove restrictions on exports to the
United States of industrial commodities, including critical minerals.
·
The United States and Indonesia are committed to strengthening
economic and national security cooperation to enhance supply chain resilience and
innovation through complementary actions to address unfair trade practices of other
countries, and through cooperation on export controls, investment security, and
combatting duty evasion.
·
In addition, the United States and Indonesia take note
of the following forthcoming commercial deals between U.S. and Indonesian companies:
o Procurement of aircraft
currently valued at 3.2 billion USD.
o Purchase of agriculture
products, including soybeans, soybeans meal, wheat, and cotton with an estimated
total value of 4.5 billion USD.
o Purchases of energy
products, including liquefied petroleum gas, crude oil, and gasoline, with an estimated
value of 15 billion USD.
In the coming weeks,
the United States and Indonesia will negotiate and finalize the Agreement on Reciprocal
Trade, prepare the Agreement for signature, and undertake domestic formalities in
advance of the Agreement entering into force.
[Source: The White House/July 22, 2025]