Indonesia, US Sign Reciprocal Trade Agreement to Deepen Economic Cooperation

The Governments of Indonesia and the United States officially sign an Agreement on Reciprocal Trade, in Washington DC, Thursday (02/19). (Photo by: BPMI of Presidential Secretariat)

The Governments of Indonesia and the United States officially signed an Agreement on Reciprocal Trade  titled “Toward a New Golden Age for the US–Indonesia Alliance” in Washington DC, Thursday (02/19).

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the agreement was signed by President Prabowo Subianto and President Donald Trump during a bilateral meeting between the two leaders that lasted for about 30 minutes, following the Board of Peace event earlier in the morning.

In the agreement, both countries committed to strengthening economic cooperation and promoting economic growth.

The agreement document was subsequently followed up on by the US Trade Representative Ambassador Jamieson Greer at the Office of the United States Trade Representative (USTR).

“(This is) one of the agreements that established the Council of Trade and Investment as an economic forum for the two countries. Under the Agreement on Reciprocal Trade, any issues related to investment or trade between Indonesia and the United States will first be addressed within the Council, particularly if there are significant increases or developments that could disrupt the economic balance between the two nations,”Airlangga said.

Airlangga added that the agreement aims to achieve shared economic prosperity, strengthen supply chains, and uphold each country’s sovereignty.

For the record, the Indonesian Government has submitted four letters on tariff negotiation since President Trump announced his tariff policy in April last year.

According to Airlangga, approximately 90 percent of Indonesia’s submisssions have been approved by the United States.

“Over this period, Indonesian representatives visited Washington DC four times, took part in seven rounds of negotiations, and engaged in more than nine in-person and virtual discussions with the USTR or Ambassador Jamieson Greer,” Airlangga said. (BPMI of Presidential Secretariat) (RAS/EP)