Indonesia secures US duty exemptions for 1,819 tariff lines: Minister
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Indonesia will obtain import duty exemptions for 1,819 tariff lines in the United States market following months of bilateral tariff negotiations.
The concessions are stipulated in the Agreement on Reciprocal Trade (ART) concluded by the two countries.
“The agreement provides zero import duty for 1,819 Indonesian tariff lines, covering agricultural and industrial commodities such as palm oil, coffee, cocoa, spices, rubber, and electronic components including semiconductors and aircraft parts,” Hartarto said on Friday.
Speaking at a virtual press conference from Jakarta, he added that Indonesia and the United States also agreed to grant tariff exemptions for textile and garment products under a tariff rate quota (TRQ) mechanism.
He explained that TRQ allows Indonesia to export textiles and garments to the US duty-free within certain volume limits, provided that the products use raw materials imported from the US, including cotton and man-made fibers.
“This arrangement will benefit around four million workers in the sector and have an impact on approximately 20 million Indonesians,” Hartarto said. He added that products outside the specified tariff lines will remain subject to a 19 percent import duty.
Indonesia has also agreed to eliminate tariffs on several US imports, particularly agricultural commodities such as wheat and soybeans.
“This means Indonesians will not pay import duties on products derived from soybeans or wheat, including noodles, tofu, and tempeh. Consumers will not bear additional costs related to import duties on these US raw materials,” he said.
Hartarto further stated that the agreement includes provisions on digital economic transactions between the two countries.
“Indonesia supports cross-border data transfers in accordance with national laws and acknowledges the US commitment to consumer data protection,” he added.
He emphasized Indonesia’s commitment to simplifying import licensing procedures and aligning standards for US industrial and agricultural products, while reducing tariff and non-tariff barriers, particularly in the information and communication, health, and pharmaceutical sectors.
As part of the broader negotiations, Indonesia also committed to purchasing US$15 billion in energy products from the US, procuring Boeing aircraft valued at US$13.5 billion, and importing more than US$4.5 billion in US agricultural commodities.
Hartarto said the ART will take effect 90 days after both countries complete their respective domestic legal and regulatory processes.
He added that the agreement is expected to support Indonesia’s long-term national development goals. “This agreement is designed to help us achieve the Golden Indonesia vision,” he said.
