Indonesian Political, Business & Finance News

Indonesian Government Responds to US Investigation into Trade Practices

| Source: CNBC Translated from Indonesian | Trade
Indonesian Government Responds to US Investigation into Trade Practices
Image: CNBC

Jakarta — The Indonesian government has assured that its reciprocal trade tariff with the United States stands at 15%. This confirmation comes despite the Trump administration currently investigating unfair trade practices involving 16 countries, including Indonesia.

Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, confirmed that Indonesia maintains the 15% tariff rate. “The trade agreement with the US essentially concerns tariffs, and we are already at 15%,” Limanseto told journalists at the ministry’s Jakarta office on Friday, 13 March 2026.

The 15% tariff applies for 150 days from late February. Limanseto stated that because Indonesia has signed the trade agreement with the US, the country will likely maintain the 15% rate. “Once the investigation concludes, countries without an ART agreement could see their tariffs increase beyond 15% during this 150-day period. However, since Indonesia has already signed the ART, we may retain the 15% discount,” he added.

The government also stated that concerns regarding forced labour practices had already been discussed and addressed in the bilateral trade agreement that was jointly agreed upon.

Indonesia and the United States signed the Agreement on Reciprocal Trade (ART) on 19 February 2026 in Washington DC, covering trade matters between both nations. The US Trade Representative (USTR) is investigating the policies, actions, and practices of 60 countries regarding their failure to effectively prevent imports produced using forced labour, which is deemed unfair and burdensome to US commerce.

“This investigation will determine whether foreign governments have taken sufficient steps to prohibit imports of goods produced using forced labour, and how failures to eliminate this practice affect US workers and businesses,” said US Trade Representative Jamieson Greer on Friday, 13 March 2026.

Greer stated that forced labour gives foreign producers an artificial cost advantage, forcing US workers and companies to compete unfairly. The USTR investigation covers 60 countries that are major US trading partners, including Australia, Canada, Brazil, China, the European Union, India, Japan, Malaysia, Mexico, Russia, Saudi Arabia, South Korea, Thailand, the United Kingdom, and Vietnam.

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