Airlangga Hartarto, Indonesia’s Coordinating Minister for the Economy, just dropped an electrifying headline. Now, the country has scored a huge diplomatic victory with a new tariff agreement with the United States, providing for a formal signing in January. This would be terrific news. It frames itself as an attractive win-win deal for both sides’ companies and workers. Hartarto’s statements happen amid increasing debate over tariffs first set by the Trump administration.
The deal represents a historic turn in Indonesia’s trading accord with the U.S. Hartarto pointed out that the tariff agreement has mutual benefits in mind, building a strong economic foundation and sustainability. He said, “This deal goes beyond tariff disputes to lay the groundwork for sustained cooperation by our nations.”
The most remarkable aspect of this tariff deal is that many Indonesian exports will be exempted from US tariffs. And the United States recently announced to exempt palm oil, coffee, and cocoa entirely from tariffs. These commodities are not just a staple of the Indonesian economy. This concession is projected to strengthen the agricultural industry and improve agricultural trade between the two countries.
In exchange, the United States would gain access to critical minerals on the basis of this agreement. These minerals—lithium, magnesium, cobalt, tantalum, indium and more—are essential to multiple industry sectors, from technology to the emerging renewable energy economy. The deal is part of a larger play by the US to get a firmer footing on critical resources, while bolstering Indonesian exports.
Hartarto’s announcement in July gives hope to greater economic cooperation between Indonesia and the United States. It’s a sign of Indonesia’s growing commitment to improving bilateral trade agreements while addressing the global economic landscape impacted by past tariffs.
As each country continues to prepare for the signing in January, both countries share an enormous amount of hope for what this agreement could accomplish. By supporting a fairer, more resilient international trading system, the partnership will better prepare Americans for the next economic crisis.