Indonesia and the United States have reached a provisional trade accord that lowers Washington’s threatened tariff on Indonesian exports to 19% from 32%, an Indonesian economic-ministry official said on Friday. The new levy, due to take effect on 1 August, will apply on top of existing sector-specific duties while detailed implementing rules are still being negotiated. In exchange, Jakarta will grant zero import duties on almost all U.S. goods, retaining tariffs only on alcoholic beverages and pork. Indonesia has also agreed not to impose local-content requirements on U.S. information-technology products and to streamline import permits, according to the official. Indonesia is pressing for further exemptions so that key commodities—including crude palm oil, nickel, cocoa, rubber and coffee—can enter the United States duty-free despite the 19% headline rate. Talks are also addressing quota waivers and safeguards against transshipment, the official added, stressing that the South China Sea was not part of the discussions. The accord is tied to side deals under which state energy company Pertamina plans to buy about US$15 billion of U.S. energy products, Indonesia will import roughly US$4.5 billion of American agricultural goods, and flag carrier Garuda intends to order 50 Boeing jets, subject to commercial review. Indonesian small-business minister Maman Abdurrahman said local micro-enterprises have not yet felt an impact, but economists such as Bhima Yudhistira warned that offering the United States across-the-board duty-free access is rare and could squeeze domestic farmers and manufacturers once the agreement is fully in force.