The text of a preliminary agreement announced by the White House on Tuesday includes Indonesia's commitment to purchase $15bn worth of liquified petroleum gas (LPG), crude and gasoline from US exporters.
The terms of the deal also will involve Indonesia's purchases of $4.5bn worth of US agricultural products and $3.2bn worth of aircraft, according to the text released by the White House today — a week after President Donald Trump announced that he secured a trade agreement with Indonesia.
A trade agreement has yet to be negotiated but it will maintain a 19pc tariff on nearly all imports from Indonesia, according to the White House fact sheet. Energy commodities will continue to be exempted from US tariffs, and the White House said it may include "identify certain commodities that are not naturally available or domestically produced in the United States for a further reduction in the reciprocal tariff rate."
Indonesia will eliminate "approximately 99pc of tariff barriers for a full range" of US industrial and agricultural products, according to the White House.
"In the coming weeks, the US and Indonesia will negotiate and finalize the agreement on reciprocal trade, prepare the agreement for signature, and undertake domestic formalities in advance of the agreement entering into force," the White House said.
Indonesia's government has already directed state-owned Pertamina to assess the potential for importing refined products from the US. That directive coincided with a parallel push by Pertamina to shift away from importing oil products from Singapore and import more fuel from the Middle East and the US.
The Trump administration since 5 April has been charging a 10pc extra "Liberation Day" tariff on most imports — energy commodities and critical minerals are exceptions — from Indonesia and nearly every foreign trade partner.
The Trump White House said in April it expected to sign "90 deals in 90 days" following early April tariffs. The US has clinched only one limited trade deal, which keeps in place a 10pc tariff on US imports from the UK while granting a lower-tariff import quota for UK-made cars.
Much like the UK-US deal, the terms of the future US-Indonesia agreement are limited to a few sectors.
Trump in June announced a deal with Vietnam, setting tariffs at 20pc, but other terms remain unknown. A preliminary trade deal with China, agreed to in early May, established a 10 August deadline for reaching an agreement on tariffs. Trump on Tuesday announced that a deal with the Philippines will establish a 19pc US tariff rate on imports from that country.
The US administration has a separate deadline of 1 August for concluding trade deals with Canada, Mexico, the EU and other major US trading partners.
US-EU trade negotiations have hit a snag after Trump threatened to impose a 30pc tariff on imports from Europe. No high level trade talks have taken place in the past week, the European Commission said on Tuesday.
