President Prabowo Subianto’s diplomatic efforts have yielded tangible results, including a significant reduction in United States tariffs on Indonesian products, dropping from 32 percent to 19 percent. This pivotal development was announced by Cabinet Secretary Teddy Indra Wijaya during a press conference in Washington D.C., United States, on Friday, February 20, following a high-level bilateral meeting between President Prabowo and former U.S. President Donald Trump.
Secretary Wijaya emphasized the direct signing of a new agreement, underscoring the immediate impact of these diplomatic engagements. “An agreement was directly signed, and I want to reiterate that the tariff rate has indeed been set at 19 percent, down from 32 percent last year. That’s one key outcome,” Teddy stated, highlighting the substantial economic benefit for Indonesia.
1,819 Products to Receive 0% Tariffs
Beyond the general tariff adjustment, Teddy also revealed another landmark achievement: a 0 percent tariff agreement for an impressive 1,819 of Indonesia’s flagship products. This sweeping concession covers a broad spectrum of goods, ranging from agricultural staples to strategic industrial outputs, including highly sought-after commodities such as coffee, cocoa, palm oil, and critical semiconductors.
“Secondly, there is a 0 percent tariff for 1,819 excellent products, particularly in the agricultural and industrial sectors, including coffee, cocoa, palm oil, and semiconductors,” Teddy elaborated. He added that after the signing of these crucial agreements, President Prabowo and President Trump engaged in a focused bilateral discussion lasting approximately 30 minutes, further solidifying their commitment to enhanced trade relations.
Anticipating More Good News
During their half-hour bilateral meeting, President Prabowo and President Trump delved into various follow-up issues, which Teddy indicated hold the potential for even more positive developments for Indonesia in the near future. “Certainly, many discussions took place, and we can anticipate that the current 19 percent might improve further for Indonesia. We will wait and see,” Teddy optimistically remarked, hinting at ongoing efforts to bolster economic ties.
Secretary Wijaya further underscored the profound importance of this meeting, noting its unique place within the broader agenda of the BOP Summit. The summit saw the attendance of more than 15 heads of state and government, yet President Prabowo Subianto stood out as the only head of state to secure and conduct a bilateral meeting with President Donald Trump. This exclusivity highlights the strategic significance and successful outcome of President Prabowo’s diplomatic initiative.
Summary
President Prabowo Subianto’s diplomatic efforts have resulted in a significant reduction of U.S. tariffs on Indonesian products, decreasing from 32 percent to 19 percent. This key outcome was announced by Cabinet Secretary Teddy Indra Wijaya following a bilateral meeting between President Prabowo and former U.S. President Donald Trump, where a new agreement was directly signed.
Furthermore, 1,819 of Indonesia’s flagship products, including coffee, cocoa, palm oil, and semiconductors, will now receive a 0 percent tariff. Secretary Wijaya noted that President Prabowo was the only head of state at the BOP Summit to hold a bilateral meeting with President Trump, underscoring the strategic success of this diplomatic engagement.