Presidents Prabowo Subianto and Donald Trump have signed the Agreement on Reciprocal Trade (ART) in Washington DC, ushering in a new era of economic cooperation between the two nations. The deal includes zero percent tariffs on 1,819 tariff lines for Indonesian products, including textiles under a quota mechanism. Airlangga Hartarto emphasized that ART focuses purely on trade, with Board of Peace issues addressed separately.
On February 19, 2026, local time in Washington DC, Indonesian President Prabowo Subianto and US President Donald Trump signed the Agreement on Reciprocal Trade (ART), titled 'Toward a New Golden Age for the U.S.-Indonesia Alliance'. The signing followed a 30-minute bilateral meeting after discussions on the Board of Peace.
Coordinating Minister for the Economy Airlangga Hartarto, in a press conference on February 20, 2026, in Jakarta, explained that the agreement establishes a Council of Trade and Investment as a forum to address trade and investment issues. "All investment and trade matters between Indonesia and the US will first be discussed in the Council of Trade if there are excessive increases or issues deemed to disrupt the balance of the two countries," Airlangga stated.
ART covers 1,819 tariff lines for Indonesian products at zero percent, including agricultural goods such as palm oil, coffee, cocoa, spices, and rubber, as well as industrial products like electronic components including semiconductors and aircraft parts. For textiles and apparel, the US grants zero percent tariffs via a Tariff Rate Quota (TRQ) mechanism, with quota volumes based on Indonesia's imports of US textile raw materials like cotton and man-made fibers.
Generally, the US imposes a 19 percent reciprocal tariff on other Indonesian imports, but with specific exceptions for agreed products. Indonesia commits to zero percent tariffs on US products, particularly agricultural imports like soybeans used for noodles, tofu, and tempeh.
Unlike ART agreements with other countries, the US removed non-economic clauses such as nuclear reactor development, South China Sea policies, and defense and border security. "Thus, our ART is purely related to trade," Airlangga said. The agreement aims to achieve shared economic prosperity, strong supply chains, and respect for each country's sovereignty.
Negotiations began with Trump's announcement on April 2, 2025, and Indonesia sent four letters in April, June, July, and August 2025. About 90 percent of Indonesia's proposals were fulfilled by the US. The agreement will take effect 90 days after legal processes are completed, including consultations with Indonesia's DPR RI and US parliamentary mechanisms. It is dynamic and can be amended through mutual written agreement.
Airlangga highlighted benefits for 4 million workers in related sectors, impacting 20 million Indonesians. "This certainly benefits four million workers in this sector, and if we count families, it greatly affects 20 million Indonesians," he added. The government commits to accelerating legalization so benefits can be felt soon, aligning with the Golden Indonesia vision.
