Kadin Praises 19% Tariff in RI-US Reciprocal Trade Deal as Competitive

WASHINGTON DC, Investortrust.id — The Indonesian Chamber of Commerce and Industry or Kadin Indonesia, the country largest business lobby, praised the 19 percent tariff under the Agreement on Reciprocal Trade with the United States as highly competitive on Wednesday, Feb 18, 2026 in Washington DC, as President Prabowo Subianto prepared to sign the pact with US President Donald Trump to rebalance trade and deepen bilateral investment. The tariff structure, including potential zero duties for certain exports using US components, is expected to strengthen Indonesia value added manufacturing and expand market access.

Speaking on the sidelines of a Business Summit attended by senior executives from both countries, Kadin Indonesia chairman Anindya Novyan Bakrie said business groups viewed the framework as a constructive signal despite the need for detailed review of its technical provisions.

“From what we hope and what we hear, the 19 percent tariff is already very competitive. Some of our export products that use components from the United States could even see tariffs reduced to zero. This is very interesting, but the details must be studied carefully,” he said.

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The Indonesian Chamber of Commerce and Industry said manufacturers and trade associations had begun exploring concrete follow up cooperation with US counterparts.

Anindya said he had spoken with leaders of the Indonesian Furniture and Handicraft Industry Association about importing raw materials from the United States, processing them domestically, and exporting finished goods back to the American market.

“They want to speak with their counterparts to see what can be imported from the United States, processed in Indonesia, and then sent back with added value,” he said. “If the demand comes from the United States, it makes sense, especially if the tariff is zero.”

The structure aligns with Indonesia broader downstream strategy, which aims to shift the economy away from raw commodity exports toward higher value manufacturing.

At the summit roundtable organized by the US Chamber of Commerce, the US ASEAN Business Council and the US Indonesia Society, President Prabowo framed the pending agreement as a milestone for long term economic certainty.

“This sends a clear signal that Indonesia and the United States choose to continue deeper economic cooperation, stronger market access, and greater certainty for the business community,” Prabowo said.

He stressed that predictability remained the decisive factor for investors weighing long term capital commitments.

“No one wants to invest in a situation of uncertainty, instability, or even chaos. We are very fortunate that Indonesia has enjoyed a relatively long period of stability and peace,” he said.

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The visit culminated in the signing of 11 memorandums of understanding valued at $38.4 billion, covering sectors from critical minerals and oilfield recovery to agriculture, textiles, furniture manufacturing and semiconductors.

Among them were agreements involving Freeport McMoRan and Indonesian investment authorities on critical minerals, Pertamina and Halliburton on oilfield recovery, as well as partnerships in cotton, agribusiness, and semiconductor development.

For Indonesian business leaders, the combination of tariff recalibration and large scale commercial commitments signaled an effort to position Indonesia as a stable and inclusive growth partner in a shifting global trade landscape.

“We saw President Prabowo truly at the forefront promoting Indonesia economic cooperation with the United States. This could be a major breakthrough, while Indonesia remains strong with America as its second largest trading partner and also strong with other countries,” Anindya said.