The US and Indonesia have finalised a trade deal under which Jakarta will support purchases of US energy and agricultural products totalling $19.5bn and help smooth flows of critical minerals, the White House said late on 19 February.
The US will maintain its 19pc tariff rate on most imports from the southeast Asian country, while Indonesia will remove tariff barriers on "over 99pc of US products" as part of the agreement, the White House said.
US president Donald Trump said in July 2025 that the US would lower its tariff rate on Indonesian goods to 19pc, from the 32pc level imposed as part of his sweeping "liberation day" tariffs announced in April 2025.
Indonesia has agreed to purchase US energy products totalling $15bn, including $7bn of refined gasoline, $4.5bn of crude and $3.5bn of LPG, the White House said. It did not give any timeline for the planned purchases.
Indonesia is already a regular importer of LPG from the US. Its purchases of US LPG steadily increased over 2022-25 to 5.1mn t last year, up by 31pc from 2024.
Indonesia has also increased its US crude imports in recent years, although it remains a relatively small buyer. Indonesia imported 15,000 b/d of light sweet WTI last year, up from 5,000 b/d of US crude in 2021, data from oil analytics firm Vortexa show. But it has not bought US gasoline since early 2023, or any US oil products since May 2024, the data show.
The Indonesian government directed Pertamina in May 2025 to assess the potential of importing refined products from the US. Indonesia can import US fuel since it already receives most of its LPG from the country, Indonesia's energy minister Bahlil Lahadalia said then.
Indonesia will also support increased imports of US metallurgical coal, a key ingredient in steel production, as part of the agreement.
And Jakarta has committed to supporting purchases of US agricultural products totalling $4.5bn. It has agreed to support imports of at least 3.5mn t/yr of soybeans, 3.8mn t/yr of soybean meal and 2mn t/yr of wheat from the US for five years, among other farm products, according to the US.
The White House announced the trade deal a day after Indonesian president Prabowo Subianto, who is visiting Washington, attended the signing of several memorandums of understanding (MoUs) between US and Indonesian firms. These include an oil field recovery agreement between Indonesian state-owned Pertamina and US oil services firm Haliburton and MoUs in the semiconductor and agricultural sectors, the Indonesian government said.
Critical minerals
Indonesia will partner with the US to improve bilateral trade flows of critical minerals, which include rare earths. This includes working with US mining firms to improve the countries' critical mineral supply chain, which ranges from mining and processing to downstream output, the White House said.
US mining company Freeport-McMoRan has extended its mining licence and expanded operations at its Grasberg copper and gold mine in Indonesia, in a deal that is expected to generate revenue of $10bn/yr and improve the US supply chain for critical minerals, the White House said. It did not give further details.
Indonesia has also agreed to limit foreign-owned processing facilities' excess production by making sure their output is in line with the country's mining quotas, according to the White House.
Chinese firms have expanded their presence in Indonesia in recent years. Chinese-invested nickel production facilities account for about 70pc of Indonesia's total capacity, according to industry estimates.
