Indonesia-United States: Reciprocal Trade Agreement: Tariff And Market Access Breakthrough

On July 22, 2025, the White house has published an announcement a trade deal with Indonesia. Under this deal, Indonesia will pay the United States (U.S.) a reciprocal tariff rate of 19%.

The key terms of the Indonesia - U.S. Agreement on Reciprocal Trade will include:

• Eliminating Tariff Barriers: Indonesia will eliminate tariff barriers, on a preferential basis, on over 99% of United States products exported to Indonesia across all sectors, including for all agricultural products, health products, etc.

• Breaking Down Non-Tariff Barriers for U.S. Industrial Exports: Indonesia will address a range of non-tariff barriers, including by: (1) exempting U.S. companies and originating goods from local content requirements; (2) exempting U.S. exports of cosmetics, medical devices, and other manufactured goods from burdensome certification and labelling requirements; (4) eliminating pre-shipment inspection or verification requirements on imports of U.S. goods; (5) adopting and implementing good regulatory practices; (6) taking steps to resolve many addressing U.S. concerns with conformity assessment procedures.

• Breaking Down Non-Tariff Barriers for U.S. Agriculture Exports – Indonesia will address and prevent barriers to U.S. agricultural products in the Indonesian market, including by: (1) exempting U.S. food and agricultural products from all of Indonesia’s import licensing regimes including its commodity balance policy; (2) providing permanent Fresh Food of Plant Origin (FFPO) designation for all applicable U.S. plant products; and (4) recognising U.S. regulatory oversight, including listing of all U.S. meat, poultry, and dairy facilities and accepting certificates issued by U.S. regulatory authorities.