Indonesia and the United States have agreed to eliminate tariff barriers on more than 99 percent of US goods exported to Indonesia across all sectors, the Office of the United States Trade Representative said in a press release on Friday.
US Trade Representative Ambassador Jamieson Greer said the landmark agreement removes trade barriers and advances the economic and national security interests of the American people.
He also expressed appreciation to Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, for his commitment to rebalancing the trade relationship between Indonesia and the United States. “I look forward to close coordination and engagement with Indonesia on the implementation of these high-standard commitments,” Greer said.
Indonesian President Prabowo Subianto and US President Donald Trump signed the Reciprocal Trade Agreement in Washington, DC, on February 19, 2026.
According to a White House fact sheet, the United States will maintain a reciprocal tariff of 19 percent on imports from Indonesia, except for certain products that will receive a reciprocal tariff of 0 percent.
“The United States committed to establishing a mechanism allowing certain textile and apparel goods from Indonesia to receive a 0 percent reciprocal tariff rate for a to-be-specified volume of apparel and textile imports,” the fact sheet said.
The document stated that the volume would be determined based on the quantity of textile exports produced from US cotton and manufactured fiber textile raw materials sourced from the United States.
Indonesia and the United States also reached an investment agreement worth approximately US$33 billion in the agriculture, aerospace, and energy sectors in the United States.
The agreement includes the purchase of approximately US$15 billion in US energy commodities, the procurement of around US$13.5 billion in commercial aircraft and aviation-related goods and services, including from Boeing, and the purchase of more than US$4.5 billion in US agricultural products.
The fact sheet also stated that Freeport-McMoRan signed a memorandum of understanding with Indonesia to extend its mining permit and expand operations in the Grasberg mineral district in Mimika District, Central Papua.
“This deal is expected to generate US$10 billion in annual revenue and will further strengthen US supply chains for critical minerals,” the fact sheet said.
The document further noted that Indonesia will eliminate tariff barriers on more than 99 percent of US products exported to Indonesia across all sectors, including agricultural goods, health products, seafood, information and communication technology products, automotive goods, and chemicals.
According to the fact sheet, Indonesia is also committed to eliminating digital trade barriers, including Harmonized Tariff Schedule (HTS) tariffs on intangible products, supporting an unconditional and permanent moratorium on customs duties on electronic transmissions at the World Trade Organization (WTO), and ensuring fair competition for US electronic payment companies.
