The Trump administration continues to receive positive results from negotiations with the country to lower import tariffs in a lucrative deal that will bring high profits to the United States (US).
Most recently, Indonesia agreed to eliminate more than 99% of tariffs on US goods and remove all non-tariff barriers that hinder the entry of US firms into the country's market, in a new trade agreement officially announced on Tuesday.
In return, the US will reduce the tariff rate on Indonesian goods to 19%, down from the original rate of 32%.
President Donald Trump described the move as a "big victory" for US automakers, technology companies, farmers and manufacturers.
In addition to the tax cuts, the agreement also requires Indonesia to fulfill its promises to:
Withdraw proposed taxes on internet data flows
Support the extension of the WTO moratorium on e-commerce taxes
Eliminate pre-shipment inspections of US agricultural exports
Accept US vehicle safety standards
Retract export restrictions on essential minerals and local content requirements
Join the Global Forum on Steel Overcapacity to take action to address overcapacity in the sector.
Further details of the final negotiations will be finalized in the coming weeks, but both countries said the agreement would open greater market access to each other and strengthen bilateral economic ties.
