Airlangga: Indonesia-US Reciprocal Trade Agreement Focuses Solely on Trade

Jakarta — Coordinating Minister for Economic Affairs Airlangga Hartarto has confirmed that the Agreement on Reciprocal Trade (ART) negotiated with the United States government focuses exclusively on trade cooperation.

He stressed that the substance of this ART differs from similar agreements Indonesia has negotiated with other countries. In this trade deal with the US, clauses outside economic cooperation were agreed to be excluded, as both parties chose to concentrate solely on trade and investment.

“Unlike various ARTs with other countries, America agreed to remove non-economic cooperation clauses,” Airlangga said in a press teleconference on Friday, 20 February 2026.

The non-economic cooperation clauses that were ultimately removed included those relating to nuclear reactor development, South China Sea policy, and defence and border security.

“So this ART is purely related to trade,” he said.

Indonesia and the US concluded trade tariff negotiations in Washington on Thursday, 20 February 2026 local time. The ART was signed by Coordinating Minister Airlangga together with US Trade Representative Jamieson Greer.

Under the agreement, the US maintains a reciprocal tariff of 19 per cent on imported products from Indonesia, except for a number of specific products that receive a zero per cent tariff. The US also committed to establishing a mechanism enabling Indonesian textile and garment products to enjoy a zero per cent reciprocal tariff for a specified volume.

The quota will be determined based on the volume of textile exports produced using cotton and synthetic fibres originating from the US. In addition to textiles and garments, a total of 1,819 Indonesian product tariff lines now receive duty-free access at zero per cent.

Products included in this scheme comprise palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components.