February 22, 2026 | 09:53 pm
TEMPO.CO, Jakarta - The Coordinating Ministry for Economic Affairs of Indonesia has denied claims that the government has permitted the import of used clothes from the United States as part of the Reciprocal Trade Agreement (ART).
“It’s not true. What is regulated under this agreement is the import of shredded worn clothing (SWC),” said Haryo Limanseto, spokesperson for the ministry, in a written statement on Sunday, February 22, 2026.
Indonesia’s obligation to allow SWC imports is outlined in Article 2.8 of the ART, which aims to support the United States’ recycled clothing industry.
Haryo clarified that the imported clothing has been destroyed and shredded for use as raw materials in industrial production, and does not have economic value like second-hand items sold in thrift stores.
“The shredded worn clothing is imported solely to serve as raw materials for patchwork fabrics and recycled textile products,” Haryo said. He emphasized that none of the SWC will enter the consumer market as second-hand clothing, as domestic industries have been designated to process all imported SWC for production purposes.
The ART is part of ongoing negotiations between Indonesia and the United States over reciprocal tariffs. In April 2025, the U.S. imposed reciprocal tariffs on several countries, including Indonesia, which faced a 32 percent tariff.
Indonesia then engaged in negotiations, securing a tariff reduction to 19 percent on July 15, 2025, as outlined in a Joint Statement on the ART framework.
The full ART agreement was signed by Indonesian President Prabowo Subianto and U.S. President Donald Trump on February 19, 2026. It will take effect 90 days after both countries submit written confirmations that all domestic legal procedures, including consultations and ratifications, are completed.
The agreement can be reviewed or amended at any time through mutual written consent.
Shortly after the signing, however, the U.S. Supreme Court ruled that Trump’s broader trade tariff policy was unconstitutional, stating that the President did not have inherent authority to impose large-scale tariffs on foreign countries.
Following the ruling, Trump initially set a 10 percent global tariff on all imports before later raising it to 15 percent.
Read: Indonesia Explains Reasons for Signing U.S. Trade Agreement
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