Coordinating Minister for Economic Affairs Airlangga Hartarto has\nannounced that the governments of Indonesia and the United States have\nagreed to eliminate import duties \u2014 setting tariffs at zero per cent \u2014\non textile and garment (apparel) products through a specific quota\nscheme.<\/p>\n
Under the Agreement on Reciprocal Trade (ART) signed by both nations,\nthe arrangement employs a Tariff Rate Quota (TRQ) mechanism that allows\na defined volume of Indonesian textile and garment imports to enter the\nUS at zero per cent tariff.<\/p>\n
However, the permitted volume is determined by the quantity of\ntextile raw materials that Indonesia imports from the US, such as cotton\nand man-made fibre.<\/p>\n
\u201cThis certainly provides benefits for four million workers in this\nsector, and if we include their families, it has a significant impact on\n20 million Indonesians,\u201d Airlangga said during a press teleconference on\nFriday, 20 February 2026.<\/p>\n
In general terms, the US will continue to impose a reciprocal tariff\nof 19 per cent on Indonesian imports. However, Airlangga explained that\nthe US government has granted special exemptions for a list of specific\nproducts identified in the agreement.<\/p>\n
In addition to textiles and garments, a total of 1,819 Indonesian\ntariff lines now enjoy duty-free access at zero per cent. These products\ninclude palm oil, coffee, cocoa, spices, rubber, electronic components\nincluding semiconductors, and aircraft components.<\/p>\n
Airlangga explained that, procedurally, the ART agreement will come\ninto force 90 days after all legal processes have been completed by both\ncountries. In Indonesia, this will involve a consultation phase with the\nHouse of Representatives (DPR RI), whilst in the US it will be resolved\nthrough the domestic parliamentary mechanism.<\/p>\n
The agreement is dynamic in nature, as both parties have agreed that\namendments may be made in the future on the basis of mutual written\nconsent.<\/p>\n
\u201cThere is also the possibility of tariff adjustments, whether lower\nrates, which would be discussed within a Council of Board that will be\nestablished,\u201d Airlangga said.<\/p>\n
He added that the government is committed to accelerating the\nlegalisation process so that the benefits can be felt by the wider\npublic as soon as possible.<\/p>\n
\u201cWe in the government will promptly submit this to the DPR RI\nregarding the legislation. And this agreement also aims to achieve\nIndonesia Emas [Golden Indonesia], which is why it is also referred to\nas a New Golden Age for both Indonesia and the United States,\u201d he\nsaid.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-and-us-agree-on-zero-per-cent-tariff-for-textile-products-key-provisions-1771661342", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }