00:00Indonesia and the U.S. have signed a new trade deal, with Washington maintaining the 19% tariff in goods
00:06exported by the Southeast Asian country.
00:09Jakarta said Indonesian coffee, chocolate, natural rubber and spices would be tariff-free.
00:14It also won an exemption for its top export, palm oil, which accounts for almost 10% of the country's
00:21overseas shipments.
00:22Textile products from Indonesia will be subject to a 0% levy, under a tariff rate quota mechanism that is
00:29yet to be finalized.
00:31Washington last year agreed to lower the duty on Indonesia's exports to the United States to 19%, down from an
00:38initial 32%.
00:39During the negotiations on the new deal, the U.S. agreed to drop its requests to add non-economic provisions
00:46to the deal.
00:47That includes those related to nuclear reactor development and the South China Sea.
00:51According to a White House fact sheet about the agreement, Indonesia will remove tariff barriers on most U.S. products.
00:58It will also address a range of non-tariff barriers, such as local consent requirements.
01:03Jakarta will also accept U.S. product standards on vehicle safety, emissions, medical devices and pharmaceuticals.
01:10Indonesia will also allow and facilitate U.S. investment in critical minerals and energy resources.
01:16The deal takes effect 90 days after both sides complete the related legal procedures.
01:21Indonesian President Prabowo Subianto traveled to Washington for the agreement and to attend the first leaders' meeting of U.S.
01:29President Donald Trump's Board of Peace.
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