Trade Minister Confident Reciprocal Trade Agreement Will Boost Indonesian Exports to the US
Jakarta — Trade Minister Budi Santoso has expressed confidence that Indonesian exports to the United States will increase following the signing of the Agreement on Reciprocal Trade (ART).
Budi stated that within Indonesia's 19 per cent import tariff rate for entry into the US, approximately 1,819 tariff lines for Indonesian products will receive zero per cent duty access.
"We expect it to rise — our target is growth, and it must grow. Because now several commodities have zero per cent tariffs, our flagship commodities can enter that market. So naturally, it should increase," said Budi in Jakarta on Friday, 20 February 2026.
The Trade Minister expressed hope that the ratification process for the ART can be completed this year, enabling swift implementation.
"I believe ratification could be finished this year — it's still early in the year. So we could implement it this year, 90 days after ratification. Hopefully, we must push for it as quickly as possible," he said.
The commodities receiving zero per cent tariffs for the US market include palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components.
In addition, Indonesia and the US have also agreed on a zero per cent tariff scheme for textile and garment products through a Tariff Rate Quota (TRQ) mechanism. This scheme allows a specified volume of Indonesian textile and garment exports to enter the US market duty-free. However, the quota allocation will be determined based on the volume of textile raw materials imported by Indonesia from the US, such as cotton and man-made fibre.
During January–December 2025, the United States contributed a trade surplus of US$21.12 billion. The largest surplus-contributing commodities were electrical machinery and equipment and parts thereof, knitted clothing and accessories, and footwear.
The value of Indonesian exports to the United States was recorded at US$30.96 billion, with the main export drivers being mechanical machinery and equipment, vehicles and parts thereof, and iron and steel.
Meanwhile, the value of Indonesian imports from the United States was recorded at US$9.84 billion, with the main commodities being mechanical machinery and equipment and parts thereof, oil seeds and oleaginous fruits, and electrical machinery and equipment and parts thereof.
Budi stated that within Indonesia's 19 per cent import tariff rate for entry into the US, approximately 1,819 tariff lines for Indonesian products will receive zero per cent duty access.
"We expect it to rise — our target is growth, and it must grow. Because now several commodities have zero per cent tariffs, our flagship commodities can enter that market. So naturally, it should increase," said Budi in Jakarta on Friday, 20 February 2026.
The Trade Minister expressed hope that the ratification process for the ART can be completed this year, enabling swift implementation.
"I believe ratification could be finished this year — it's still early in the year. So we could implement it this year, 90 days after ratification. Hopefully, we must push for it as quickly as possible," he said.
The commodities receiving zero per cent tariffs for the US market include palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components.
In addition, Indonesia and the US have also agreed on a zero per cent tariff scheme for textile and garment products through a Tariff Rate Quota (TRQ) mechanism. This scheme allows a specified volume of Indonesian textile and garment exports to enter the US market duty-free. However, the quota allocation will be determined based on the volume of textile raw materials imported by Indonesia from the US, such as cotton and man-made fibre.
During January–December 2025, the United States contributed a trade surplus of US$21.12 billion. The largest surplus-contributing commodities were electrical machinery and equipment and parts thereof, knitted clothing and accessories, and footwear.
The value of Indonesian exports to the United States was recorded at US$30.96 billion, with the main export drivers being mechanical machinery and equipment, vehicles and parts thereof, and iron and steel.
Meanwhile, the value of Indonesian imports from the United States was recorded at US$9.84 billion, with the main commodities being mechanical machinery and equipment and parts thereof, oil seeds and oleaginous fruits, and electrical machinery and equipment and parts thereof.