Indonesia and the United States of America are set to start the new year with a tariff deal.

According to Senior Economic Minister Airlangga Hartarto, Indonesia's chief negotiator, an agreement may be signed in January by Presidents Prabowo Subianto and Donald Trump.

Indonesia, US Set to Sign Tariff Deal

As reported by CNA, the US had agreed to give tariff exemptions to Indonesia's coffee, tea, and palm oil. However, in return, the US wants access to the country's critical minerals.

The report notes that Indonesia is the world's biggest producer as well as exporter of palm oil. The country is also one of the major producers of robusta coffee beans, which is popular around the world.

In a briefing to the media, Indonesia's chief negotiator said that "The main thing, of course, is providing balanced market access for American products, and at the same time, market access for Indonesia to the US."

"No Indonesian policies are restricted by this agreement," the Senior Economic Minister added. "This agreement is commercial and strategic in ‍nature, and benefits ‌the economic interests of both countries in a balanced manner."

Will the 19% Tariff Hold?

It can be recalled that in April, Trump had threatened to impose a 32% tariff on Indonesia. Negotiations lowered the number to 19% in July.

According to Airlangga, there is no need to worry that the tariff will be brought back to 32% should the deal not be signed in January. He explained that both Indonesia and the US had already agreed on everything in the agreement.

"There is no factor that can hinder the signing of this ART (Agreement on Reciprocal Trade)," Airlangga assured.

Reuters has also noted in its report that the tariff deal with the US does not prevent Indonesia from striking trade deals with other countries.