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Washington and Jakarta finalized a reciprocal trade agreement Thursday, lowering U.S. Tariffs on Indonesian goods to 19% from 32%, according to a White House fact sheet released February 19, 2026. The deal, which President Donald Trump and Indonesian President Prabowo Subianto jointly signed, aims to expand market access for both countries and boost trade volumes.
Under the agreement, Indonesia will eliminate tariff barriers on over 99% of U.S. Products exported across all sectors, including agriculture, health products, seafood, information and communications technology, automotive products, and chemicals. The U.S. Will maintain the 19% tariff rate on Indonesian imports, with exemptions for specific identified products, the White House stated.
The agreement addresses a range of non-tariff barriers, with Indonesia committing to exempt U.S. Companies and goods from local content requirements. Jakarta will also accept U.S. Federal motor vehicle safety and emission standards, as well as FDA standards for medical devices and pharmaceuticals, according to the fact sheet. Indonesia also agreed to remove burdensome certification and labeling requirements and eliminate pre-shipment inspections.
A key component of the deal focuses on agricultural trade. Indonesia will exempt food and agricultural products from its import licensing regimes and ensure transparency and fairness regarding geographical indications, including for meats and cheeses. This addresses longstanding concerns from U.S. Exporters about market access for agricultural goods, according to the U.S. Trade Representative.
The agreement also includes provisions for digital trade, with Indonesia eliminating existing tariff lines on “intangible products” and supporting a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization. This is intended to create a level playing field for U.S. Digital service providers, the White House said.
Indonesia secured tariff exemptions for over 1,700 goods, including coffee, spices, chocolate, natural rubber, and palm oil, according to Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto, as reported by Reuters. Approximately 90% of Indonesia’s requests regarding tariff terms were accepted by the U.S.
The deal was finalized during President Subianto’s visit to Washington, where he attended the inaugural meeting of President Trump’s “Board of Peace,” a forum focused on international conflict resolution and reconstruction efforts, including in Gaza. U.S. Secretary of State Marco Rubio met with both Indonesian Foreign Minister Sugiono and Vietnamese Foreign Minister Le Hoai Trung during the visit, according to the Associated Press.
The U.S. Trade Representative confirmed in a statement that the agreement will “break down trade barriers” and advance the interests of the American people. The full text of the U.S.-Indonesia Agreement on Reciprocal Trade was published by the USTR on February 19, 2026.
