Indonesia and U.S. Set to Sign Landmark Reciprocal Trade Agreement in January

JAKARTA, Investortrust.id — President Prabowo Subianto is scheduled to travel to Washington, D.C., in late January 2026 to sign a definitive reciprocal trade agreement with President Donald J. Trump, marking a significant recalibration of economic ties between Southeast Asia’s largest economy and the United States.

The Agreement on Reciprocal Trade (ART) follows months of intensive negotiations aimed at stabilizing trade flows and addressing the tariff hikes that have characterized recent U.S. trade policy. According to Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, the technical groundwork for the deal is nearing completion.

"After all technical processes are finalized, we expect the documents to be ready for an official signing by President Prabowo and President Trump before the end of January," Airlangga said during a press conference on Tuesday.

Easing the Tariff Burden

The agreement is expected to provide substantial relief for Indonesian exporters. Under the preliminary terms reached earlier this year, the reciprocal tariff rate applied to Indonesian goods entering the U.S. will drop from 32% to 19%.

Crucially for Jakarta, the deal carves out exemptions for Indonesia’s primary commodity exports. Key products including palm oil, coffee, and cocoa—which form the backbone of the nation’s agricultural trade—will be shielded from the broader tariff regime.

In exchange, Indonesia has committed to expanding market access for American goods, addressing non-tariff barriers, and pursuing a program of deregulation to streamline bilateral commerce.

The Final Sprint

The push for a January signing follows a high-level meeting in Washington between Mr. Airlangga and the U.S. Trade Representative (USTR), Jamieson Greer. The two sides have established a "framework timetable" to resolve the remaining legal nuances.

Technical teams from both nations are scheduled to meet during the second week of January (Jan 12–19) for a final "legal scrubbing" of the text.

"The U.S. side is currently coordinating the exact timing for the meeting between the two leaders," Airlangga added. The deal is seen as a strategic win for President Prabowo, who has prioritized economic diplomacy and sought to protect Indonesia’s labor-intensive industries from global trade volatility.