Indonesia Joins US 'Good Group', Enjoys 10 Percent Export Tariff

Bilateral relations between Indonesia and the United States have entered a new, more solid chapter. This strategic partnership is reflected in the strengthening of economic integration and a shared commitment to expanding mutually beneficial global market access. The US Government, through the Office of the United States Trade Representative (USTR), has officially given positive recognition to Indonesia’s progressive steps in labour law enforcement. The primary focus of this appreciation is on Indonesia’s success in resolving forced labour issues and its firm policy banning the import of products indicated to involve such practices. Thanks to this commitment, Indonesia has now been selected to join a group of six priority countries, or the ‘Good Group’, out of a total of 60 US partner nations. Indonesia stands alongside Canada, Ecuador, the European Union, Mexico, and Pakistan as countries entitled to receive special consideration from the US Government. This international recognition was confirmed in a bilateral meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and the head of the USTR, Ambassador Jamieson Greer, on the sidelines of the 2026 OECD Ministerial Council Meeting in Paris, France. ‘Indonesia has been set to receive a 10 percent tariff based on the results of the Section 301 investigation of the US Trade Act, along with five other countries, while 54 other countries will receive a 12.5 percent tariff,’ said Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso in an official statement on Friday (5/6). In addition to the low tariff agreement, Indonesia has strengthened its legal foundation through an Agreement of Reciprocal Trade (ART) and the issuance of Minister of Trade Regulation Number 9 of 2026. This regulation specifically governs the prohibition of importing products made with forced labour. As a direct impact, the USTR plans to grant 18 product exclusion requests submitted by Indonesia under the Section 301 investigation. Coordinating Minister Airlangga emphasised that this facility is tangible proof of international trust in Indonesia’s debottlenecking efforts or resolution of regulatory barriers. Despite recording positive achievements, both countries still discussed a number of procedural and technical issues. The implementation of the Section 301 tariff exclusions is expected to be realised only after 24 July 2026, to avoid overlap with ongoing global tariffs and to maintain legal certainty for business actors. In response, Minister Airlangga has instructed rapid coordination with sectoral ministries and agencies to accelerate procedural certainty on the ground. This cooperation is expected to become a driving force for shared economic prosperity for both countries in the future.