US–Indonesia Reach Agreement to Reduce Tariffs to 19%

The United States and Indonesia have finalized a new trade agreement that lowers tariffs to 19%, aiming to boost bilateral trade and strengthen economic cooperation.

Feb 20, 2026 - 13:59
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US–Indonesia Reach Agreement to Reduce Tariffs to 19%

The United States and Indonesia have concluded negotiations on a revised trade framework, agreeing to reduce tariffs to 19% as part of efforts to enhance economic ties. The agreement is expected to facilitate smoother trade flows, improve market access for businesses in both countries, and encourage greater investment cooperation.

Officials from both sides described the deal as a positive step toward deepening strategic and commercial relations. By easing tariff barriers, the agreement aims to make exports more competitive, stabilize supply chains, and support key industries impacted by previous trade restrictions.

The move comes amid broader global trade realignments, with both nations seeking to secure stronger partnerships and diversify trade channels. Analysts believe the tariff reduction could benefit sectors such as manufacturing, agriculture, energy, and technology, while also reinforcing long-term economic collaboration between Washington and Jakarta.

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