Politics
8 min read
Trump's Schedule: The Key to the Davos Tariff Deal Signing
Jakarta Globe
January 20, 2026•2 days ago

AI-Generated SummaryAuto-generated
Indonesia and the US are finalizing a reciprocal trade agreement, with the signing dependent on leaders' schedules, potentially at the Davos forum. The pact's legal drafting is nearing completion. Negotiations have progressed significantly, with concessions including tariff-free palm oil for Indonesia and a reduction in US tariffs. The agreement aims for fairness and addresses trade imbalances.
Jakarta. Indonesia said Monday that the US tariff deal signing would boil down to the leaders’ schedule despite the two presidents coming to the annual economic forum in Davos.
About a month ago, the Indonesian government announced that President Prabowo Subianto would fly to Washington by end-January to ink the pact.
Prabowo is currently on a UK state visit, and will head to the World Economic Forum in the renowned Swiss ski resort Davos afterwards. However, Indonesia’s initial announcement on Prabowo’s trip did not say whether he would be stopping by Washington. US President Donald Trump, too, will attend the Davos forum in person.
Haryo Limanseto, the spokesperson at the Coordinating Ministry for Economic Affairs, repeated Monday that the reciprocal trade agreement had entered the final stage, namely the “legal drafting” process. This is where both sides make sure that the text is clear and legally sound.
“We are hoping to finish the legal drafting as soon as possible, with a target to conclude it within this month. The meeting [for the signing] will depend on the leaders’ schedule,” Haryo told the Jakarta Globe.
The Globe asked Haryo whether the leaders would sign the document on the margins of the Davos talks.
“[Again,] we have to wait for the legal drafting to finish, and it depends on their schedule. The conference in Davos is a different agenda,” Haryo said.
Former Deputy Foreign Minister Dino Patti Djalal told the press that whatever deal Indonesia signs with the Trump administration needs to uphold fairness.
“We need to make sure that the soon-to-be-signed tariff pact is truly fair. Equality is the most important element in every diplomatic agreement. We should treat everyone equally, no matter how big or small a country is,” Dino said.
He went on to say how “US foreign policy does not care about equality at all as all they want is subjugation.”
Negotiations had begun about weeks after Trump unveiled his tariff gambit in April 2025. The punitive trade policy started with a 10% baseline tariff on all countries, and would rise to 32% for Indonesia. However, Jakarta managed to convince the Trump administration to lower it down to 19% following some major concessions, including a $15 billion American energy import pledge. The latest negotiation round saw the US giving a tariff-free treatment for Indonesian palm oil.
Trump’s tariff salvo all started with his concerns over trade imbalances. Between January and November 2025, Indonesia enjoyed a $16.5 billion surplus when trading with the US, government data showed.
Tags: Keywords:
Rate this article
Login to rate this article
Comments
Please login to comment
No comments yet. Be the first to comment!
