February 20, 2026 | 11:48 am
TEMPO.CO, Jakarta - President Prabowo Subianto and US President Donald Trump signed the Agreement of Reciprocal Trade (ART) in Washington, D.C., on Friday morning, February 20, 2026, Indonesia time. The signing also officially imposes a 19 percent tariff on Indonesian products entering the US.
The bilateral meeting between the two heads of state lasted approximately 30 minutes following the Board of Peace activities. "Today, the President immediately signed the Agreement of Reciprocal Trade cooperation entitled Toward a New Golden Age for the US-Indonesia Alliance, which was signed jointly by President Prabowo and President Donald Trump," stated Coordinating Minister for Economic Affairs Airlangga Hartarto during a virtual press conference.
Under the ART document, 1,819 agricultural and industrial products will receive zero tariffs or be exempt from import duties into the US. These include palm oil, coffee, cocoa, spices, rubber, electronic components such as semiconductors, and aircraft parts.
America will also provide zero tariffs for textile and apparel products through a Tariff Rate Quota (TRQ) mechanism.
In return, Indonesia will grant zero tariffs for US-imported products commonly consumed by the public, specifically soybeans and wheat. Airlangga noted that these commodities are widely utilized by the population in the form of tempeh and noodles.
Indonesia is also committed to facilitating the entry of goods by reducing both tariff and non-tariff barriers. The primary focus is to provide regulatory certainty in the technology (ICT), health, and pharmaceutical sectors. This agreement will only take effect 90 days after the legal processes are completed in both countries, including consultations with the Indonesian Parliament and internal procedures in the United States.
In addition to the signing of the ART, 11 derivative Memorandum of Understanding agreements were also ratified. These cover energy purchase deals, agriculture, technology, and other sectors with a total value of US$38.4 billion.
Both countries also agreed to establish a Council of Trade and Investment as a follow-up to the Agreement of Reciprocal Trade. This forum will serve as the primary coordination platform to discuss trade and investment issues, including risk mitigation in the event of a value surge or barriers that may disrupt the trade balance between the two nations.
Read: Indonesia and US Sign Trade Deal for New Golden Age Alliance
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