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The new trade agreement between the U.S. and Indonesia strengthens economic ties by enhancing U.S. access to Indonesian critical minerals and fossil fuels. Indonesia will increase imports of U.S. crude and liquefied petroleum gas, while promoting U.S. investment in its mineral industry.

The U.S. has reduced tariffs on Indonesian goods from 32% to 19% and granted zero-tariff access for palm oil, coffee, and other major products. The deal aligns with U.S. efforts to secure critical mineral supply chains and reduce dependence on China.

Indonesia plans to purchase $15 billion in American energy commodities and develop an export corridor for U.S. coal. The agreement requires ratification by Indonesia's parliament.