Government Answers 22 Public Questions Still Shrouded in Mystery About the Indonesia-US Reciprocal Trade Agreement
Jakarta, VIVA – The Agreement on Reciprocal Trade (ART) between Indonesia and the United States, reportedly signed by President Prabowo and US President Donald Trump this week, has drawn significant public attention. Numerous questions from the public remain unanswered.
The Coordinating Ministry for Economic Affairs has compiled 22 frequently asked questions about the agreement. Ministry spokesperson Haryo Limanseto provided answers to these questions.
The following is a list of questions and answers provided by the Government, quoted on Sunday, 22 February 2026:
1. What was the basis for the Indonesian Government to negotiate and reach an agreement with the US Government regarding Reciprocal Tariffs?
On 2 April 2025, the US Government unilaterally imposed Reciprocal Tariffs on countries contributing to the US trade deficit, including Indonesia, which was subject to a 32 per cent tariff (US data: deficit of US$19.3 billion in 2024).
The Government considered negotiations necessary to maintain the competitiveness of export products and the livelihoods of approximately 4–5 million direct workers in labour-intensive industries affected by these tariffs. The Government chose the path of diplomacy rather than retaliatory action, which could have been more damaging to the national economy.
The Government conducted intensive negotiations with the US until a reduction in the Reciprocal Tariff from 32 per cent to 19 per cent was announced on 15 July 2025, as set out in the Joint Statement on the ART Framework, which stated that the US and Indonesian Governments would promptly discuss and finalise the ART.
On 19 February 2026, the Presidents of Indonesia and the United States signed the ART Agreement, which established the agreed Reciprocal Tariff rate and tariff exemptions for Indonesia’s flagship products such as palm oil, cocoa, coffee, rubber, and textiles entering the US market.
2. When will the ART take effect?
The agreement will take effect 90 days after both countries provide written notification confirming that their respective domestic legal procedures (consultation with relevant institutions and ratification) have been completed.
3. Can the ART be reviewed and amended?
The agreement can be reviewed and amended at any time upon written request and mutual consent of both parties.