Airlangga: Indonesia Receives Discount on US Tariffs to 15%

Jakarta — The government has ensured that tariffs on Indonesian product exports to the United States will no longer remain at the 19% level previously agreed in bilateral trade negotiations. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the tariffs now applicable follow the United States’ global tariff policy of 15%.

This change occurred following the United States Supreme Court’s cancellation of the reciprocal tariff policy previously implemented by President Donald Trump. According to Airlangga, the court’s decision meant that the tariff scheme previously negotiated was adjusted to align with the new US government policy.

“The global tariff is 15%, so what applies is the global tariff of 15%,” said Airlangga when met by reporters at the Ministry of Manpower office in Jakarta on Friday (27 February 2026).

Previously, in the trade agreement between Indonesia and the United States, tariffs for Indonesian products had been negotiated down from 32% to 19%. However, after the reciprocal tariff policy was cancelled, the tariffs were readjusted to follow the global tariff announced by Washington.

“We received a discount down to 15%,” said Airlangga.

Nevertheless, Airlangga emphasised that the trade agreement between Indonesia and the US remains in force. The agreement, known as the Agreement on Reciprocal Trade (ART), is still awaiting the ratification process and will only become effective approximately 90 days after signing.

“It is not cancelled; it only takes effect after 90 days and after ratification,” he said.

Under the ART agreement, Indonesia has obtained zero per cent tariff facilities for thousands of export products to the US market. The government has noted that approximately 1,819 tariff lines for Indonesian products will receive 0% import duties.

Products receiving this facility include agricultural commodities and industrial goods, such as palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components.

Airlangga assured that the zero per cent tariff facility remains applicable in accordance with the initial agreement despite changes in US tariff policy.

“The 0% import duty for the sector covering more than 1,800 products is one of our mainstays, so we hope the market can expand,” he said.

Additionally, Indonesia’s textile and apparel sector also receives 0% tariffs to the US market. However, this policy is applied through the Tariff Rate Quota (TRQ) mechanism, which provides tariff exemption up to a certain volume limit.

The government believes this policy will have a significant impact on labour-intensive industries domestically. Airlangga noted that the textile and garment sector alone supports approximately 4 million workers in Indonesia.

“If we calculate including families, this significantly affects 20 million Indonesians,” said Airlangga.