RRI.CO.ID, Jakarta - Indonesia and the United States have agreed to form a Trade Council, a bilateral mechanism designed to reinforce the implementation of the recently signed Agreement on Reciprocal Trade (ART).

The council is expected to provide a direct platform for resolving trade disputes without resorting to multilateral forums such as the World Trade Organization (WTO).

Indonesian Trade Minister Budi Santoso said the council would help ensure smoother cooperation between the two countries. “The Board of Council is a positive step. If trade issues arise, they can be resolved bilaterally,” he noted on Friday, February 20, 2026, as quoted by Antara.

According to Minister Budi, the bilateral mechanism will allow disputes to be addressed more quickly and effectively, while maintaining a constructive trade relationship. He emphasized that the spirit of the ART is to create mutually beneficial ties, not one-sided advantages.

The establishment of the Trade and Investment Council is one of the key provisions of the ART, which also includes tariff reductions. Under the agreement, the U.S. will apply a zero percent tariff on Indonesian textiles and apparel through a tariff rate quota (TRQ) system.

The quota volume is linked to Indonesia’s imports of U.S. raw materials such as cotton and man-made fibers.

Beyond textiles, a total of 1,819 Indonesian product tariff lines - including agricultural goods and industrial components - will benefit from zero percent tariffs. While the U.S. maintains a reciprocal tariff of 19 percent on other imports, certain products identified in the agreement are exempted.

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the ART will take effect 90 days after both countries complete their respective legal processes - consultations with the Indonesian House of Representatives and internal procedures in the U.S. Congress.

He added that any future adjustments to the agreement can be made through written mutual consent, with tariff differences to be addressed within the newly formed council. ***