East Java Chamber of Commerce Optimistic About Indonesia-US Trade Deal

Surabaya (ANTARA) - The East Java Chamber of Commerce and Industry (Kadin) is optimistic about the implementation of the Indonesia-United States Agreement on Reciprocal Trade, as opportunities for zero per cent tariffs on key products are considered to remain open.

East Java Kadin Chairman Adik Dwi Putranto said business operators in his region should be confident in embracing both the opportunities and challenges arising from the bilateral trade agreement.

“At Kadin, we must always remain optimistic regardless of the situation,” Adik said when met by journalists at the East Java Kadin office in Surabaya on Monday.

According to him, a number of provisions in the Agreement on Reciprocal Trade (ART) actually present opportunities for Indonesian business operators, including those in East Java, to expand exports of key products to the United States without import duties.

Adik noted that Indonesia has secured zero per cent reciprocal tariff facilities for flagship products exported to the US market, such as palm oil, coffee, cocoa and rubber. This also includes several textile commodities through a tariff-free quota mechanism.

“The zero per cent rate is a tremendous opportunity for our colleagues,” he said.

He said the arrangement provides an alternative for developing overseas markets beyond segments affected by tariff adjustments, ensuring that business operators do not lose market opportunities.

Furthermore, Adik assessed that the opening of market access for American products at zero per cent tariffs could also help meet domestic industrial raw material needs, thereby supporting national production efficiency.

Nevertheless, he cautioned relevant parties to carefully manage imported US products to avoid weakening domestic industries, including with regard to standards and certification requirements that must be met in accordance with Indonesian regulations.

Adik emphasised that halal certification obligations for foreign food and beverage products must continue to be enforced in accordance with existing provisions, even for those entering under the zero per cent scheme.

“Halal is not merely a regulation — it is a genuine market requirement,” he said.

The ART agreement, signed on 19 February 2026 in Washington DC between Indonesian President Prabowo Subianto and US President Donald Trump, covers the establishment of reciprocal tariffs as well as tariff exemptions for Indonesia’s key products.

The agreement will take effect once both countries have completed their respective internal procedures.