The United States and Indonesia have reached a major trade agreement that will see Indonesia eliminate tariffs on over 99% of U.S. goods and remove non-tariff barriers, while the U.S. imposes a 19% tariff on Indonesian exports—lower than the previously threatened 32%. The deal is expected to open at least $50 billion in new market access for U.S. commodities, particularly benefiting American industrial, agricultural, and tech sectors. Indonesia will also lift restrictions on critical mineral exports, a move welcomed by U.S. industries. The agreement includes significant purchases of U.S. products, such as 50 Boeing jets, and is hailed as a 'huge win' for American businesses. While the deal is celebrated by both governments, some observers warn it could impact Indonesia’s energy transition goals and raise concerns about the balance of benefits.
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