Indonesia and the United States formalized a reciprocal trade agreement in Washington, signed by Airlangga Hartarto and U.S. Trade Representative Jamieson Greer after months of talks. Washington had earlier agreed to lower Indonesia's exports to the U.S. to 19% from 32%. President Prabowo met President Trump and the two signed an implementation document the White House said will strengthen economic security and growth. Indonesian and U.S. companies also announced $38.4 billion in commercial deals this week.
Indonesia and U.S. Sign Reciprocal Trade Agreement in Washington
Airlangga Hartarto, Indonesia's chief economic affairs minister, poses after an interview with Reuters at his office in Jakarta, Indonesia, August 26, 2025. REUTERS/Willy Kurniawan
Indonesia and the United States have signed a reciprocal trade agreement, the Indonesian Ministry of Economic Affairs said on Friday. The accord was finalized in Washington and signed by Indonesia's coordinating minister for economic affairs, Airlangga Hartarto, and U.S. Trade Representative Jamieson Greer after months of negotiations.
Washington had last year agreed to lower Indonesia's exports to the U.S. to 19%, down from an initial rate of 32%. The ministry's brief statement did not provide details of the new pact.
President Prabowo Subianto traveled to Washington to secure the agreement and to attend a leaders' meeting with U.S. President Donald Trump. On Friday, Prabowo and Trump signed a document titled 'Implementation of the Agreement Toward a NEW GOLDEN AGE for the U.S.-Indonesian Alliance.' The White House said the document "will help both countries to strengthen economic security, promote economic growth, and thereby continuously lead to global prosperity."
US Trade Representative Jamieson Greer at the opening of the World Trade Organization (WTO) Informal ministerial gathering during the 56th annual meeting of the World Economic Forum, WEF, in Davos, Switzerland, January 22, 2026. LAURENT GILLIERON/Pool via REUTERS
Commercial Deals
Separately, Indonesian and U.S. companies announced commercial agreements worth $38.4 billion earlier in the week.
Next Steps
Officials have not yet released implementation timelines or sector-specific provisions. Markets and trade observers will look for follow-up statements from both governments to clarify how the agreement will be applied in practice.
Reporting by Stanley Widianto; Editing by John Mair.
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