Indonesia, US sign agreement on reciprocal trade, Indonesian ministry says

JAKARTA: Indonesia and the United States have signed an agreement on reciprocal trade, the Indonesian Ministry of Economic Affairs said on Saturday.

The signing of the agreement by Indonesia's senior economic minister Airlangga Hartarto and U.S. Trade Representative Jamieson Greer followed months of negotiations, after Washington last year agreed to lower Indonesia's exports to the U.S. to 19%, down from an initial rate of 32%.

Details of the agreement were not included in the statement.

Indonesia's President Prabowo Subianto has travelled to Washington for the deal and to attend the first leaders' meeting of U.S. President Donald Trump's Board of Peace.

Prabowo and Trump on Friday signed a document titled 'Implementation of the Agreement Toward a NEW GOLDEN AGE for the U.S.-Indonesian Alliance' which the White House said "will help both countries to strengthen economic security, promote economic growth, and thereby continuously lead to global prosperity".

Most of Indonesia's exports to the U.S. will have a 19% tariff imposed on them under a reciprocal trade agreement, although there will be no tariffs on chocolate, natural rubber and coffee, the Indonesian government said in a statement on Friday.

The Indonesian government also said that after the signing of the deal, it might be able to get tariff exemptions on nearly 1,700 commodities, including palm oil.

Earlier this week, Indonesian and U.S. companies had signed deals worth $38.4 billion.