Groups praise Trump trade deal with Indonesia
The Trump administration on Thursday announced an Agreement on Reciprocal Trade with Indonesia, the world’s fourth most populous country.
“President Trump is unlocking Indonesia’s market of over 280 million people to create commercially meaningful opportunities for American farmers and manufacturers,” said Trade Representative Jamieson Greer. “This landmark agreement breaks down trade barriers while advancing the economic and national security interests of the American people.
U.S. Meat Export Federation President and CEO Dan Halstrom said, “Indonesia has been a leading priority for the U.S. red meat industry throughout recent negotiations on reciprocal trade. Especially without access to China, the U.S. beef industry needs to be able to serve the Indonesian market, which demands similar items as China and other Asian destinations.”
“Currently, Indonesia is essentially closed to U.S. beef due to its trade-limiting import licensing system and effective cap on imports. The new agreement addresses the many barriers maintained by Indonesia, and successful implementation will allow Indonesian importers and consumers to have meaningful, consistent access to U.S. beef for the first time.
“The agreement also includes a 50,000 metric ton annual purchase commitment. This is in line with USMEF’s market potential estimates and should help incentivize true implementation of the commitments Indonesia has made on removing its non-tariff barriers. Export value could reach $400 million to $500 million in the near term, following implementation,” Greer said.
The National Milk Producers Federation, U.S. Dairy Export Council, and the Consortium for Common Food Names said the agreement would provide key market access expansions and protections for American dairy products.
“The common names protections included in this agreement are especially important for America’s farmers and exporters,” said Jaime Castaneda, executive director of CCFN. “Ensuring U.S. producers can continue to market and sell products like ‘parmesan’ and ‘feta’ in Indonesia without unfair restrictions helps preserve export opportunities and supports the livelihoods of farmers and manufacturers across the United States.”
Growth Energy said that, as part of the deal, Indonesia has agreed to lift its 30% tariff on U.S. ethanol exports, remove measures preventing the import of U.S. ethanol, and adopt transportation fuels mixed with up to 5% ethanol (E5) by 2028 and up to 10% ethanol (E10) by 2030. Longer-term, Indonesia aims to incorporate 20% ethanol (E20) into its fuel mix.
“On the heels of a similar agreement with Guatemala, the new trade framework with Indonesia represents a renewed hope for American agriculture,” said Growth Energy CEO Emily Skor.
