Washington D.C., February 20 (AseanAll) — The Governments of Indonesia and the United States have reached an agreement to reduce tariffs to zero percent on a number of Indonesian products. Coordinating Minister for Economic Affairs Airlangga Hartarto said that the agreement on reciprocal trade document lists 1,819 product tariff lines that receive zero percent tariffs.
“The agreement on reciprocal trade lists 1,819 tariff lines for Indonesian products in agriculture and industry. These include palm oil, coffee, cocoa, spices, rubber, electronic components, including semiconductors, and aircraft components, all of which have zero percent tariffs,” he said in a press statement with the media in Washington, DC, on 19 February 2026.
Meanwhile, for textile and apparel products, Coordinating Minister Airlangga said that the United States also imposes zero percent tariffs through a tariff rate quota (TRQ) mechanism. “This certainly benefits four million workers in this sector. And if we calculate this across families, it significantly impacts 20 million Indonesians,” he added.
As part of the reciprocal agreement, Indonesia is also committed to providing zero percent tariffs for several key products from the United States, particularly agricultural commodities, such as wheat and soybeans. Airlangga said this step ensures that the public is not burdened with additional costs for products made from imported raw materials.
“Indonesians pay zero percent for goods produced from soybeans or wheat, in this case, noodles, or tofu and tempeh. So, our people are not burdened with additional costs for raw materials imported from the United States,” he said.
At the multilateral level, the two countries also agreed not to impose import duties on electronic transactions, in accordance with the World Trade Organization (WTO) position. Indonesia also promotes limited cross-border data transfer regulations in accordance with national laws and regulations, while ensuring equal consumer data protection.
Furthermore, Coordinating Minister Airlangga said that the Government will also implement strategic trade management to ensure trade remains secure and prevents misuse for interests beyond peaceful purposes. This agreement will take effect 90 days after the legal process is completed by both parties, including consultations with the Indonesian House of Representatives and can be adjusted based on mutual written agreement.
“This agreement also aims to achieve a golden Indonesia, which is why this agreement is also referred to as a new golden age for both Indonesia and the United States,” he said.
He said further that this agreement differs from various agreements between the United States and other countries because it is firmly focused on trade cooperation. “The United States has agreed to revoke articles that are not related to economic cooperation, including those related to nuclear reactor development, South China Sea policy, and border defense and security, so this agreement on reciprocal trade is purely related to trade,” he stated.
