During the year-end Roundtable with USABC on December 22 in Washington, D.C., which was held right after his meeting with U.S. Trade Representative Jamieson Greer, Coordinating Minister for Economic Affairs Airlangga Hartarto announced that Indonesia had agreed on the substance of a final Agreement on Reciprocal Trade (ART) with the U.S. He expected legal scrubbing to begin in January and a formal signing to be done by the end of January 2026. To capture both sides of the story, there has been no confirmation from the U.S side regarding a signing timeline, with USG officials indicating that further work remains on the ART with Indonesia.
Under the announced framework deal, the U.S agreed to grant zero tariffs for select natural commodities, including palm oil, coconut oil, coffee, cocoa, and tea. Manufactured products such as textiles, garments, footwear, furniture, and consumer goods will continue to face a 19% tariff, despite representing one of Indonesia’s largest export categories to the U.S. market. Minister Airlangga stated that halal regulations will apply only to food and beverages, while suggesting that Mutual Recognition Arrangement for halal certification would be beneficial, though no detailed plans were shared.
Under the framework, the U.S agreed to grant zero tariffs for select natural commodities, including palm oil, coconut oil, coffee, cocoa, and tea. Manufactured products such as textiles, garments, footwear, furniture, and consumer goods will continue to face a 19% tariff, despite representing one of Indonesia’s largest export categories to the U.S. market. Minister Airlangga also stated that halal regulations will apply only to food and beverages, while suggesting that a Mutual Recognition Arrangement for halal certification would be mutually beneficial, though no detailed plans were shared.
While GOI has made concrete progress through the deregulation policies, non-tariff barriers affecting US companies remain. These include Local Content Requirements in the ICT and health sectors, WTO Moratorium alignment, as well as regulations governing Export Proceeds from Natural Resources (DHE SDA). Regarding the latter, Minister Airlangga shared with USABC that GOI plans to establish a mechanism for private banks to work alongside state-owned banks. He also responded positievely to members' request for predictable import quotas for food-grade corn as well as exemptions for Safeguard LLDPE (Linear Low-Density Polyethylene) and other materials that cannot be sourced domestically.
Domestically, some Indonesian business groups have expressed concerns about the limited scope of the ART. The Indonesian Young Entrepreneurs Association (HIPMI) noted that the current outcomes leave export-oriented manufacturing sectors vulnerable. HIPMI has raised concerns about potentially tighter rules of origin, which could complicate compliance for Indonesia based industries that still rely on imported inputs, thereby increasing costs and administrative burdens.
