Airlangga: Indonesia-US Trade Tariff Falls to 15%
Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto revealed that the Indonesia-United States (US) trade tariff rate has decreased to 15 percent from the previous 19 percent.
US President Donald Trump announced a global tariff rate of 15% as a response to a Supreme Court decision that nullified previous import duties on Friday (21 February).
“The global tariff (imposed by the US) is 15%, so the global tariff of 15% applies. This amounts to a discount to 15%,” said Airlangga at the Ministry of Manpower office in Jakarta on Friday (27 February).
He emphasised that the Indonesian and US governments are currently discussing the continuation of the Reciprocal Trade Agreement (ART) between Indonesia and the US. Consequently, the agreement signed by both countries on Thursday (20 February) remains in force, particularly regarding the implementation of 0% tariffs for certain products.
Airlangga also confirmed that the ART has not been cancelled, as the agreement will only take effect after 90 days and following a ratification process.
“It is not cancelled (the ART); it will only take effect after 90 days and after ratification,” he stated.
Under the trade agreement, both countries have agreed to implement 0% tariffs for several commodities. Indonesian products receiving this facility include palm oil, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components.
For textiles and textile products (TPT), 0% tariffs will also be applied to specific import volumes to be determined later through a quota volume scheme or tariff rate quota (TRQ) scheme, adjusted according to cotton usage and artificial fibre inputs from the US.
“Several commodities will maintain 0% tariffs,” said the Golkar Party politician.
He added that the removal of import duties for over 1,600 sectors is one of Indonesia’s key strategies to drive market expansion.
“If the entry cost is 0% for more than 1,600 sectors, that is one of our main strategies. So it is hoped that the market can expand,” he asserted.
According to him, several commodities that currently receive 0% tariffs have essentially already enjoyed this facility previously.
“Those that were at 0% are still at 0% now,” he concluded.
Indonesian Chamber of Commerce (Kadin Indonesia) Chairman Anindya Novyan Bakrie emphasised the importance for businesses to carefully review the trade tariff scheme between Indonesia and the United States (US).
The Indonesia-US agreement has its own mechanism that is not directly affected by the court decision.
Airlangga also revealed that the trade agreement regarding the setting of tariffs at 19% for Indonesian products entering the US will be continued with the US government.
Additionally, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Temporary Direct Cash Assistance for Welfare (BLTS Kesra) programme will have a significant impact on economic growth in the fourth quarter of 2025.