Indonesia and US Agree on Zero Per Cent Tariff for Textile Products: Key Provisions

Coordinating Minister for Economic Affairs Airlangga Hartarto has announced that the governments of Indonesia and the United States have agreed to eliminate import duties — setting tariffs at zero per cent — on textile and garment (apparel) products through a specific quota scheme.

Under the Agreement on Reciprocal Trade (ART) signed by both nations, the arrangement employs a Tariff Rate Quota (TRQ) mechanism that allows a defined volume of Indonesian textile and garment imports to enter the US at zero per cent tariff.

However, the permitted volume is determined by the quantity of textile raw materials that Indonesia imports from the US, such as cotton and man-made fibre.

“This certainly provides benefits for four million workers in this sector, and if we include their families, it has a significant impact on 20 million Indonesians,” Airlangga said during a press teleconference on Friday, 20 February 2026.

In general terms, the US will continue to impose a reciprocal tariff of 19 per cent on Indonesian imports. However, Airlangga explained that the US government has granted special exemptions for a list of specific products identified in the agreement.

In addition to textiles and garments, a total of 1,819 Indonesian tariff lines now enjoy duty-free access at zero per cent. These products include palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components.

Airlangga explained that, procedurally, the ART agreement will come into force 90 days after all legal processes have been completed by both countries. In Indonesia, this will involve a consultation phase with the House of Representatives (DPR RI), whilst in the US it will be resolved through the domestic parliamentary mechanism.

The agreement is dynamic in nature, as both parties have agreed that amendments may be made in the future on the basis of mutual written consent.

“There is also the possibility of tariff adjustments, whether lower rates, which would be discussed within a Council of Board that will be established,” Airlangga said.

He added that the government is committed to accelerating the legalisation process so that the benefits can be felt by the wider public as soon as possible.

“We in the government will promptly submit this to the DPR RI regarding the legislation. And this agreement also aims to achieve Indonesia Emas [Golden Indonesia], which is why it is also referred to as a New Golden Age for both Indonesia and the United States,” he said.