Indonesia–US Sign Reciprocal Trade Agreement, Tariff on Indonesian Products Officially Reduced to 19%
JAKARTA. The Indonesian government and the United States officially signed a reciprocal trade agreement, known as the Agreement on Reciprocal Trade (ART), on Friday (February 20, 2026), Indonesia time.
The agreement was signed by Coordinating Minister for Economic Affairs Airlangga Hartarto and US Trade Representative Jamieson Greer, as broadcast on the official YouTube channel of the Presidential Secretariat and reported by Bisnis.com.
Although the agreement has been signed, the Indonesian government has not yet disclosed the full details of the agreement or the specific tariff arrangements that will apply under the cooperation.
From the US side, however, the agreement is said to provide broader market access for American products to Indonesia while removing tariff barriers for most of their exports.
“President Trump is opening Indonesia’s market of more than 280 million people to create meaningful commercial opportunities for American farmers and manufacturers,” Greer said in an official statement quoted from the website of the Office of the United States Trade Representative (USTR).
He also emphasized that the agreement carries strategic value for both the economic and security interests of the United States.
“I am pleased to sign this historic Agreement with Indonesia and I thank Indonesian Minister Airlangga Hartarto for his commitment to rebalancing our trade relationship. I look forward to coordinating and engaging closely with Indonesia in implementing these high-standard commitments,” he added.
Tariffs on Indonesian Products Officially Reduced
Earlier, the Indonesian government confirmed that the United States would reduce import tariffs on Indonesian products to 19%. In addition, several key commodities such as crude palm oil (CPO), coffee, and cocoa will even enjoy a 0% tariff, meaning they will enter the US market duty-free.
The agreement is the result of lengthy negotiations that began in 2025. At the beginning of that year, the US had imposed tariffs of up to 32% on Indonesian products. However, following negotiations, including direct communication between President Prabowo Subianto and US President Donald Trump, the tariff rate was successfully reduced to 19%.
As part of the reciprocal arrangement, Indonesia has also committed to eliminating import duties on most products originating from the United States.
The Coordinating Ministry for Economic Affairs stated that, substantively, the negotiations had been completed since mid-2025, with both countries finalizing the harmonization of legal language before the official signing took place. (KEN)
