Trade Minister Assures Zero-Tariff US Product Imports Will Not Harm Domestic Industry

Jakarta — Trade Minister Budi Santoso has confirmed that imports of agricultural products from the United States receiving zero per cent tariffs will not disrupt the sustainability of domestic industry.

Budi stated that agricultural commodities such as soybeans, wheat, and cotton are products needed by industry and are not produced domestically.

“These are mostly things we need because they are largely raw materials. We also need soybeans — our largest imports come from America,” Budi said in Jakarta on Friday, 20 February 2026.

“If we don’t facilitate this, it would actually make things harder for our industry,” he added.

Budi explained that with zero per cent tariffs, national industry would benefit from easier imports and lower production costs. He noted that if raw materials can be obtained cheaply, the prices of finished products can also become more affordable for the public.

“The way to make things cheaper is to make it easier, so we don’t end up buying at high prices. If we buy at high prices, then food prices will also be expensive,” Budi said.

He added that commodities such as wheat and soybeans are vital for the food and beverage industry. According to him, this policy represents a rational step in safeguarding raw material supply, price stability, and the sustainability of national industry.

Under the Agreement on Reciprocal Trade (ART), the reciprocal tariff arrangement between Indonesia and the United States, Indonesia has granted zero per cent tariff facilities for a number of agricultural commodities including soybeans and wheat from the US.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the policy aims to protect public purchasing power. Soybean and wheat derivative products such as tofu, tempeh, and instant noodles will not be subject to additional cost burdens.

The principal impact of this agreement is the stabilisation of staple food prices based on imports. Indonesia does not produce soybeans in sufficient quantities to meet the needs of the national food industry.