While the comprehensive details of the final deal are still pending release, Edge is highly optimistic about key components outlined in the framework. Crucially, the agreement includes the outright elimination of tariff barriers on more than 99% of U.S. products, a benefit that directly encompasses dairy exports. This sweeping reduction in tariffs is anticipated to significantly reduce costs and increase competitiveness for American milk producers seeking to expand their presence in the Indonesian market.

Beyond tariff reductions, the framework also incorporates vital commitments from Indonesia to proactively address and prevent other non-tariff barriers that have historically impeded the flow of U.S. food and agricultural products. A significant provision in this regard is the exemption of U.S. food and agricultural products, including dairy, from all of Indonesia’s complex import licensing regimes. This streamlining aims to simplify bureaucratic processes and accelerate market entry for US dairy companies.

Furthermore, the agreement emphasizes principles of transparency and fairness concerning geographical indications (GIs), which is particularly relevant for specialized cheese and meat products. It also crucially commits Indonesia to recognizing U.S. regulatory oversight, a pivotal step that includes the official listing of all U.S. meat, poultry, and dairy facilities. Additionally, Indonesia will now accept certificates issued directly by U.S. regulatory authorities, ensuring greater ease and confidence in dairy product certification and compliance.