U.S.-Indonesia Trade Agreement Framework

Authors Landyn K. Young and Luis Ribera

Another trade agreement framework was announced by the White House a few weeks ago, this time with Indonesia. The released statement explains that tariffs on 99 percent of exports from the United States to Indonesia will be removed, as well as addressing non-tariff barriers. In exchange, tariffs will remain at 19 percent for imports from Indonesia. U.S. agricultural imports from Indonesia reached $7.14 billion in 2025, with exports to the country lagging behind at $2.89 billion, which makes Indonesia the 9th largest source of U.S. agricultural imports and 12th largest export destination. 

Graph 1. U.S.-Indonesia Agricultural Trade, 2020-2025

Source: Global Agricultural Trading System (GATS), USDA/FAS

Exports to Indonesia are dominated by oilseeds which makeup over a third of agricultural export value at $1.14 billion. An additional $752 million of exported products were grains and feed. Dairy products accounted for $221 million of the $454 million of animal products exported to Indonesia. Following these main groups are cotton ($146 million), ag chemicals ($58 million), and fish ($55 million).

Graph 2. U.S. Agricultural Exports to Indonesia, 2025

Source: Global Agricultural Trading System (GATS), USDA/FAS

On top of being the most exported agricultural category, oilseed products led imports from Indonesia. Palm oil and palm kernel oil together made up $2.03 billion of the $3.11 billion in oilseed product imports. Fish, primarily shellfish, accounted for a quarter of agricultural imports with $1.86 billion in imports, followed by cocoa and coffee. Overall, Indonesia seems like a very promising market for agricultural products.

Graph 3. U.S. Agricultural Imports from Indonesia, 2025

Source: Global Agricultural Trading System (GATS), USDA/FAS

Sources

Foreign Agricultural Service (FAS). Global Agricultural Trade System (GATS). Online database. Online public database accessed February 2025.

The White House. “Fact Sheet: Trump Administration Finalizes Trade Deal With Indonesia.” February 19, 2025. https://www.whitehouse.gov/fact-sheets/2026/02/fact-sheet-trump-administration-finalizes-trade-deal-with-indonesia/.


Young, Landyn K., and Luis Ribera. “U.S.-Indonesia Trade Agreement Framework.Southern Ag Today 6(13.4). March 26, 2026. Permalink