PALMOILMAGAZINE, JAKARTA — The Indonesian government continues to reinforce the country’s position in global trade amid shifting international dynamics through active and measured economic diplomacy. These efforts aim to safeguard national interests, expand market access, and enhance the competitiveness of Indonesian products worldwide.
Speaking during a media briefing in Jakarta on Friday (26/12), Coordinating Minister for Economic Affairs Airlangga Hartarto said trade cooperation with the United States has made significant progress.
“Regarding discussions with the United States, all sectors have been covered, including access to critical minerals. For critical minerals, there have already been discussions with US export agencies, and American companies are also engaging directly with Indonesian critical mineral companies. This access is being facilitated by the government,” Airlangga said in a written statement received by Palmoilmagazine.com on Saturday (27/12).
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Indonesia and the United States Trade Representative (USTR) have agreed on all key substantive and technical elements of the Agreements on Reciprocal Trade (ART) following meetings in Washington, D.C., based on a balanced approach that accommodates the interests of both countries. Under the agreement, the US has granted tariff exemptions for several of Indonesia’s leading export commodities, including crude palm oil (CPO), coffee, tea, cocoa, and a range of labor-intensive manufactured products. The policy is expected to preserve Indonesia’s export competitiveness while providing greater certainty for domestic businesses.
Beyond tariffs, Indonesia–US cooperation also covers cross-sectoral issues, including enhanced access to critical minerals. Airlangga emphasized that collaboration in this area is not new, noting the long-standing involvement of US companies in Indonesia’s mining sector, such as Freeport’s investment since 1967, alongside other multinational firms.
The ART document is currently undergoing legal scrubbing and finalization. The government is targeting the signing of the agreement by the Presidents of Indonesia and the United States before the end of January 2026.
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At the same time, Indonesia is accelerating export market diversification by expanding trade partnerships with non-traditional markets. A key strategic step was the signing of the Free Trade Agreement between Indonesia and the Eurasian Economic Union (I-EAEU FTA) on December 21, 2025. The agreement opens access to the Eurasian region—covering Russia, Kazakhstan, Kyrgyzstan, Belarus, and Armenia—which has a combined population of nearly 180 million and a total GDP of USD2.56 trillion. More than 95% of trade value under the agreement receives tariff preferences, with average import duties close to zero.
Through the I-EAEU FTA, Indonesia has the opportunity to boost exports of key commodities such as CPO and its derivatives, footwear, coffee, cocoa, textiles, fisheries products, as well as digital services and creative economy offerings. In addition to supporting market diversification, the agreement is projected to lift national economic growth by 2.36% and strengthen the competitiveness of value-added products.
To accelerate the utilization of trade agreements, the government is encouraging the establishment of business councils and the organization of business forums with partner countries, including those in Eurasia and the European Union. These initiatives are intended to facilitate direct engagement among businesses and speed up trade cooperation without waiting for the full ratification process.
The government reaffirmed its commitment to maintaining a balance between strengthening the domestic economy and expanding global market access. By broadening its network of international trade agreements, Indonesia aims to improve export performance, create wider opportunities for businesses—including micro, small, and medium enterprises (MSMEs)—and sustain national economic resilience.
“We are maintaining domestic purchasing power, opening new markets, and safeguarding economic resilience at home. At the same time, we are opening new overseas markets, including through the I-EAEU. This is a clear opportunity for Indonesian businesses, including MSMEs, to access global markets more competitively, with average import duties already close to zero,” Airlangga concluded.
The briefing was also attended by Trade Minister Budi Santoso, Tourism Minister Widiyanti Putri Wardhana, Minister for MSMEs Maman Abdurrahman, Minister of Religious Affairs, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, Deputy for Trade and Digital Economy Coordination Ali Murtopo Simbolon, Expert Staff for Regional Development Haryo Limanseto, Chairman of HIPPINDO Budiharjo Iduansjah, and Chairman of APPBI Alphonzus Widjaja. (P3)
