February 20, 2026 | 03:44 pm
TEMPO.CO, Jakarta - Minister of Economic Affairs Airlangga Hartarto announced that the United States has agreed to provide tariff exemptions for Indonesian textile products under specific quotas, as part of the recently signed reciprocal trade agreement.
“Specifically for Indonesian textile and apparel products, the United States will provide a zero percent tariff under a Tariff Rate Quota (TRQ) mechanism,” Airlangga said during a virtual press conference on Friday, February 20, 2026, Indonesia time.
The TRQ system sets import duties based on a fixed volume. Under this arrangement, Indonesian textile and garment exports will enjoy zero tariffs for agreed volumes.
The quota is determined by the share of exported products made with U.S. raw materials, including cotton and synthetic fibers.
This provision is outlined in the Agreement on Reciprocal Trade (ART), signed by President Prabowo Subianto and President Donald Trump on February 19, 2026, U.S. time.
Airlangga noted that reciprocal tariff arrangements for these goods had already begun through preliminary business agreements.
“The exact volume will be determined later, but under the MoU signed yesterday, U.S. cotton purchases will also provide tariff exemptions for exports. So far, exports have reached around US$4 billion,” he said.
Airlangga emphasized that the agreement would benefit 4 million workers in Indonesia’s textile and garment sector. Considering families, the impact could extend to 20 million Indonesians.
Under the broader trade deal, most Indonesian exports to the U.S. will face a 19 percent tariff, except for 1,819 agricultural and industrial products eligible for zero tariffs. These include crude palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft parts.
In exchange, Indonesia will remove tariffs on over 99 percent of U.S. imports, covering sectors such as agriculture, healthcare, seafood, ICT, automotive, and chemicals.
Read: Indonesia and US Sign Trade Deal for New Golden Age Alliance
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