Indonesia Secures Zero Tariffs on 1,819 Products in U.S. Trade Pact

JAKARTA, Investortrust.id — Indonesia will gain zero-tariff access to the U.S. market for 1,819 product categories under the newly signed Agreement on Reciprocal Trade, Coordinating Economic Minister Airlangga Hartarto said Friday, Feb 20, 2026 in Jakarta, calling the deal a broad-based boost for agriculture and industry.

The tariff lines cover a wide range of goods, from palm oil, coffee, cocoa, spices and rubber to electronic components, semiconductors and aircraft parts.

“In this ART there are 1,819 tariff lines for Indonesian products, both agricultural and industrial, including palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components, with a 0% tariff,” Airlangga said during a virtual press briefing.

Textiles and apparel will receive 0% access through a Tariff Rate Quota mechanism, a structure that he said could benefit roughly 4 million workers in the sector and up to 20 million Indonesians when including family members.

“Of course this provides benefits for 4 million workers in this sector, and if we count their families, this significantly affects around 20 million Indonesians,” he said.

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In exchange, Indonesia will grant tariff facilities to selected U.S. products, including wheat and soybeans, key inputs for domestic food processing.

“Indonesian consumers will pay 0% for goods produced from soybean or wheat, including noodles and tofu and tempeh,” Airlangga said.

Both countries also agreed, in line with their positions at the World Trade Organization, not to impose customs duties on electronic transmissions, extending a moratorium on digital trade tariffs.

Indonesia will allow limited cross-border data flows in accordance with national law while recognizing U.S. commitments to consumer data protection standards comparable to its own, he added.

The government pledged to reduce tariff and non-tariff barriers and provide greater certainty in sectors such as information and communications technology, healthcare and pharmaceuticals.

The agreement will take effect 90 days after the completion of domestic legal procedures in both countries, and Jakarta will consult Parliament on implementation.

The text allows amendments by written consent and leaves room for further tariff adjustments through a joint council board to be established under the pact.