February 20, 2026 | 09:09 pm
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 results are documented in a 45-page ATR document, which outlines the obligations of Indonesia, the United States, and the mutual obligations between the two countries.
In the agreement, the United States demands that Indonesia fulfill at least 217 obligations, while the United States has six obligations. The total obligations between the two parties amount to three points.
Indonesia is barred from imposing import licensing of U.S. goods "in a manner that restricts" imports of such goods. Indonesia also must ensure that non-automatic import licenses do not diminish the competitiveness of US export products.
Another obligation that Indonesia must comply with is to provide non-discriminatory market access for US agricultural commodities, as outlined in Article 2.3 on Agriculture
Under point (a) of Article 2.3, the United States requires Indonesia to ensure that the implementation of sanitary and phytosanitary (SPS) measures is science- and risk-based and does not function as a disguised restriction on bilateral trade. The United States also demands that Indonesia removes SPS barriers deemed unjustified in areas that harm the principle of reciprocal agreements.
Another demand is for Indonesia not to restrict US market access by using specific cheese and meat terms. The mentioned cheeses include mozzarella, blue cheese, cheddar, and burrata, while the meat categories include salami, bratwurst, and black forest ham.
Furthermore, Indonesia is required to coordinate and align policies in border regions with potential future US policies. The ART document cited "border-adjusted tax measures" or other border measures to address regulatory arbitrage that may harm US workers and businesses.
Under the same provision, Indonesia is obliged to not enforce value-added taxes on US companies, both "in law or in fact."
In Article 5.1, it is stipulated that Indonesia must align its policies with the United States if Washington imposes duties, quotas, prohibitions, fees, charges, or import restrictions from other countries under the pretext of economic or national security.
The United States also regulates export and investment controls, as stipulated in Article 5.2. In this article, Indonesia is required to cooperate with the United States to restrict the transactions of individuals and entities listed in the "US Department of Commerce Bureau of Industry and Security Entity List" and the "US Department of the Treasury Office of Foreign Assets Control Lists of Specially Designated Nationals and Blocked Persons List (SDN List) and the Non-SDN Consolidated Sanctions List."
US Obligations towards Indonesia
In Article 1.1 regarding tariffs, the United States is obligated to adjust the reciprocal tariff rate of Indonesian products. In Article 5.3, the United States is required to collaborate with Indonesia to streamline and enhance defense trade.
Under Article 6.1 concerning investment, the US is required to consider supporting investment financing in critical sectors in Indonesia, through US institutions such as the Export-Import Bank of the United States (EXIM Bank) and the US International Development Finance Corporation (DFC), if eligible.
In the section titled 'Schedule,' the United States is required to not apply "additional ad valorem rate of duty applicable" to Indonesian goods. The United States is also obligated to provide a reciprocal tariff of zero percent for a number of goods.
Finally, the United States must apply tariffs other than the Most Favored Nation (MFN) tariffs that are in effect.
Read: Indonesia and US Sign Trade Deal for New Golden Age Alliance
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