Airlangga's Office Projects Indonesia Could Face 18% Final Tariff from US
Indonesia is expected to bear a final tariff of 18% on products exported to the United States, based on the results of the US Section 301 trade investigation. Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, stated that the final amount remains subject to the completion of ongoing legal and administrative processes in the US. This figure is the result of a stacking mechanism involving forced labour components and structural excess capacity components.
“Through the stacking mechanism of these components—alongside exclusions for several agreed-upon products—the final tariff for Indonesia is projected to be at the 18% level. This figure is the target to be achieved by the end of the process, while ensuring clarity and continuity in its implementation,” said Susiwijono, as reported on Monday (8/6/2026).
He noted that the final amount still depends on the resolution of ongoing legal and administrative proceedings in the United States. Furthermore, an additional comment period and follow-up hearings will be held before the tariffs are fully implemented. Consequently, the 18% figure remains a final projection subject to the conclusion of the official process.
The US government has reaffirmed its commitment to excluding certain product headings in accordance with agreements reached by both parties. Susiwijono added that one of the mechanisms to be further developed is a specific mechanism for the textile sector. The resolution regarding structural excess capacity components is expected to follow in the weeks after the temporary tariffs expire on 24 July, through a similar process.
Indonesia is currently subject to an additional 10% tariff under Section 301, which will take effect after 24 July 2026, following the expiry of the 10% Global Tariff. In addition to the Section 301 forced labour component, an additional component related to structural excess capacity will be added.
Susiwijono stated that Indonesia has secured a favourable position in the interim results of the Section 301 trade investigation. He noted that the USTR has placed Indonesia in a small group of selected nations that have demonstrated commitments regarding forced labour issues. “This achievement places Indonesia in a better category compared to many other trading partners,” said Susiwijoho.
The Indonesian government, he added, has consistently and cooperatively completed all required stages. “Indonesia has submitted written responses, participated in public hearings, attended a series of consultations, and provided all information updates requested by the USTR,” he concluded.