Prabowo Set to Sign RI-US Tariff Deal as Draft Nears Completion

JAKARTA, Investortrust.id — President Prabowo Subianto is prepared to sign Indonesia’s reciprocal tariff agreement with the United States after negotiators заверш final legal drafting in Washington, State Secretary Prasetyo Hadi said on Wednesday, Jan 7, 2026. The deal is expected to reshape bilateral trade terms and ease tariff pressures on key Indonesian exports.

State Secretary Prasetyo Hadi said negotiations had entered the final verification and drafting phase, scheduled for Jan 12 to Jan 19, 2026 in Washington, DC. He said the signing would follow once the legal text was finalized.

“According to the schedule, January 12 to January 19 is the legal drafting phase, and we hope that all agreed points can be fully reflected in the text,” Prasetyo said at the Hambalang media center on Tuesday, Jan 6, 2026.

He added that both negotiation teams would use the drafting phase to refine technical provisions and ensure alignment with earlier political agreements. The government expects the final document to be ready for signing by the end of January.

“Our hope is that by the end of the month it can be signed, while throughout the process we continue to negotiate in Indonesia’s interest,” Prasetyo said.

Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia and the United States had agreed on all substantive issues forming the core of the agreement on reciprocal tariffs. He said remaining work focused on legal scrubbing and document clean up.

In late December 2025, Airlangga met United States Trade Representative Ambassador Jamieson Greer in Washington as part of efforts to finalize negotiations on US import tariffs of 19 percent imposed on Indonesian goods.

Airlangga said the legal review would be completed during the second week of January 2026, with the final agreement targeted for completion in the third week. He said both sides had already agreed on the substance contained in the draft reciprocal trade agreement.

Under the deal, Indonesia has committed to expand market access for US products, address non tariff barriers, and strengthen cooperation in digital trade, technology, national security, and commercial sectors. In return, the United States has pledged tariff exemptions for Indonesian exports not produced domestically in the US.

These products include palm oil, cocoa, coffee, tea, and other strategic commodities, which officials say could significantly support Indonesia’s export performance. The agreement is seen as a key element of Indonesia’s broader trade and industrial strategy.

Meanwhile, the Indonesian Textile Association urged Prabowo to directly lobby US President Donald Trump to eliminate tariffs on Indonesian textile exports. The industry remains subject to the 19 percent reciprocal tariff despite rising imports of US cotton.

The association said textiles and garments are among Indonesia’s largest labor absorbing industries and remain vulnerable to tariff barriers. It argued that cotton imports from the US should qualify as part of a reciprocal trade framework.

“Indonesia remains a major importer of cotton from the United States as part of an import commitment worth $4.5 billion,” said API vice chairman Ian Syarif in a statement on Tuesday, Jan 6, 2026.

He said cotton imports were expected to continue rising in line with growing production of cotton based garments and fabrics for the US market. The association believes a cotton for textiles reciprocity scheme could help narrow the US trade deficit with Indonesia.

“With a reciprocal scheme between cotton imports from the US and exports of cotton based textile garments from Indonesia to the US, the trade deficit gap can be reduced,” Ian said.

The association also highlighted Indonesia’s rayon industry, which relies on sustainably managed industrial forests, as further justification for tariff relief. It said the production cycle had been developed responsibly without harming the environment.