Indonesia Pushes Back Against US Demands to Protect Economic Autonomy
JAKARTA, Dec 23, 2025 – Indonesia and the United States have finalised all key issues in bilateral tariff negotiations, clearing the path for Presidents Prabowo Subianto and Donald Trump to sign a trade agreement by late January. Senior Economic Minister Airlangga Hartarto announced the breakthrough after talks in Washington with US Trade Representative Jamieson Greer.
The deal grants US access to Indonesia’s critical minerals in exchange for tariff exemptions on Indonesian palm oil, tea, and coffee—key exports for the world’s largest palm oil producer. Airlangga emphasised balanced market access, with no restrictions on Indonesia’s trade deals with other nations.
Despite earlier tensions over alleged backtracking, Airlangga described negotiations as having normal “dynamics.” The agreement builds on a July preliminary pact reducing Trump’s threatened 32% tariff to 19%. Two-way trade reached US$36.2 billion January-October, with Indonesia enjoying a US$14.9 billion surplus.
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