Indonesia, US Aim to Sign Reciprocal Trade Agreement by Late January 2026

Jakarta: Indonesia is targeting late January 2026 for the signing of a reciprocal trade agreement with the United States, following the completion of technical and legal reviews scheduled for early next month.

Coordinating Minister for Economic Affairs Airlangga Hartarto said on Tuesday that the agreement is expected to be finalized after a week-long technical meeting beginning in the second week of January. The timing of the bilateral summit between President Prabowo Subianto and U.S. President Donald Trump is currently being finalized by the U.S. government.

The reciprocal trade agreement is intended to ensure equal market access for both countries, building on a joint statement issued in July 2025.

Under the proposed framework, the United States will provide tariff exemptions for key Indonesian agricultural exports, while Indonesia will facilitate U.S. access to its critical mineral resources, which are vital to the global green energy transition.

“The agreement is commercial and strategic in nature, and it balances the economic interests of both countries,” Hartarto said, adding that all major negotiating obstacles have been resolved, as quoted from Antara, Tuesday, 23 December 2025.

The pact is also expected to address exclusions in current U.S. trade policy. While Executive Order 14360, signed by President Trump in November, granted tariff exemptions for several agricultural commodities—such as coffee, tea, and cocoa—it excluded palm oil.

As the world’s largest palm oil producer, Indonesia views the inclusion of palm oil in the reciprocal agreement as a significant breakthrough.

Meanwhile, Indonesian Ambassador to the United States Indroyono Soesilo confirmed that preparations for President Prabowo’s visit to Washington are underway. The Indonesian Embassy is coordinating logistical arrangements while awaiting final instructions from Jakarta.

The government emphasized that the agreement is strictly focused on commercial and strategic trade cooperation and will not interfere with Indonesia’s domestic policy framework.