Indonesia-US Trade Pact Grants Zero Tariffs for 1,819 National Products

RRI.CO.ID, Jakarta - Indonesia has secured zero-tariff access for 1,819 of its export tariff lines to the United States under a newly concluded bilateral trade arrangement, marking a significant shift in market access despite Washington maintaining a broader reciprocal tariff.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the tariff facility is part of the final outcome of Indonesia-US trade negotiations formalized in the Agreement on Reciprocal Trade (ART).

"Under the ART framework, 1,819 tariff lines covering Indonesian products - ranging from agricultural goods such as palm oil, coffee, cocoa, spices, and rubber to industrial items including electronic components, semiconductors, and aircraft parts - will be subject to a zero percent tariff,” Minister Airlangga said during a virtual press conference in Jakarta on Friday, February 20, 2026, as quoted by Antara.

In addition, Indonesia and the United States agreed on a zero-tariff scheme for textiles and apparel through a Tariff Rate Quota (TRQ) mechanism. The scheme allows a certain volume of Indonesian textile and garment exports to enter the US market duty-free.

The quota size will be determined based on the volume of US textile raw materials imported by Indonesia, such as cotton and man-made fibers. “Of course, this will benefit 4 million workers in the sector, and if we calculate it, it significantly affects around 20 million Indonesians,” he added.

While the US will continue to impose a 19 percent reciprocal tariff on Indonesian imports in general, the 1,819 identified tariff lines and textile products covered under the agreement are exempted with zero percent duties.

As part of the deal, Indonesia will also grant zero-tariff treatment to certain US-origin products, particularly agricultural commodities such as wheat and soybeans.

“This means Indonesians will pay zero percent tariff on goods produced from soybeans or wheat, including noodles, tofu, and tempeh. So, our people will not face additional cost burdens for raw materials imported from the United States,” he explained.

Both countries also agreed not to impose customs duties on digital economic transactions. The policy aligns with Indonesia’s approach toward other trade partners, including European countries.

“Indonesia also encourages limited cross-border data transfers in accordance with Indonesian law and recognizes that the United States will provide consumer data protection equivalent to the standards applied in Indonesia,” he continued.

The government further committed to simplifying import licensing and product standardization for US industrial and agricultural goods, as well as reducing tariff and non-tariff barriers, particularly in the information and communication technology (ICT), healthcare, and pharmaceutical sectors.

Procedurally, he said the ART will take effect 90 days after all legal processes are completed in both countries. In Indonesia, this includes consultations with the House of Representatives, while in the US it will proceed through internal congressional mechanisms.

“This agreement is also aimed at achieving Indonesia Emas. Therefore, this agreement can be called a New Golden Age for both Indonesia and the United States,” he concluded.

The two countries also recorded commitments covering the purchase of approximately USD15 billion in US energy commodities, procurement of Boeing aircraft worth around USD 13.5 billion, and more than USD 4.5 billion in US agricultural products. ***