In late January 2026, Indonesia and the U.S. want to sign a trade agreement that benefits both countries

Jakarta, Thekabarnews.com—Coordination Minister for Economic Affairs Airlangga Hartarto says that Indonesia and the United States are targeting signing a long-awaited reciprocal trade deal in late January 2026. Negotiations will resolve all significant issues before the signing takes place.

Airlangga reports that the negotiations are progressing smoothly. President Prabowo Subianto and President Donald Trump are anticipated to sign the Agreement on Reciprocal Trade. This will occur after technical and legal evaluations are done in early January.

“We have worked out all the big and technical concerns in the agreement,” Airlangga stated. He also added that both parties are currently finalizing the signing details. These details encompass administrative and legal aspects.

The United States cut proposed tariffs on Indonesian goods from 32 percent to 19 percent after both sides agreed on the trade framework in July. Indonesia promised to remove tariffs on more than 99% of the U.S. imports. They will also remove non-tariff barriers. In exchange, they will buy more American goods.

Indonesia promised to buy $15 billion worth of U.S. energy products and $4.5 billion worth of agricultural goods as part of the arrangement. They also got tariff breaks on important Indonesian exports like coffee, cocoa, and palm oil.

The deal also permits the U.S. to utilize Indonesia’s vital mineral resources. The global transition to sustainable energy deems these resources essential. Indonesian officials have said that the transaction is important for business and strategy. It also holds larger economic and political significance.

Indonesia has always had a trade surplus with the U.S., which is its second-largest export market after China. Official numbers indicate that trade between the two countries was worth $36.2 billion from January to October 2025. Moreover, Indonesia had a $14.9 billion surplus during that time.

If finalized as planned, the deal would be one of the most complete trade agreements between the two countries in recent years. It would change the way they trade with each other. This change is significant as the global economy changes.