Indonesia's US trade tariff trimmed to 15 percent, says minister

The reduction follows a February 20 ruling by the US Supreme Court that invalidated US President Donald Trump’s global tariff policy under the International Emergency Economic Powers Act (IEEPA), as well as Washington’s plan to raise global tariffs.

“We received a reduction to 15 percent,” Airlangga said, noting that the recent Indonesia-US trade tariff deals outlined in the Agreement on Reciprocal Trade (ART) will remain valid after 90 days.

“It is not canceled. It will take effect after 90 days and following ratification,” he said.

Under the agreement, 1,819 Indonesian tariff lines are granted duty-free access of up to zero percent.

Products covered include palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft parts.

In addition, both countries agreed to eliminate import duties on Indonesian textile and garment products under a quota scheme.

Airlangga assured that the zero-percent duty facility will continue to apply.

“The zero-percent duty for more than 1,600 tariff lines is one of our key advantages. We expect market expansion. Those previously at zero percent remain unchanged,” he said.

Previously, the United States imposed a 19 percent reciprocal tariff on Indonesian imports. However, the 1,819 identified tariff lines and listed textile products were granted zero-percent exemptions under the ART.

Following the Supreme Court ruling, the US government began implementing a temporary global tariff of 10 percent with plans to raise it to 15 percent.

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Translator: Arnidhya Nur Z, Resinta Sulistiyandari