United States and Indonesia Sign Reciprocal Trade Agreement

The Federal government of the United States and the Government of Indonesia signed the Agreement of Reciprocal Trade (ART) in Washington, D.C., on February 20, 2026. The deal aims to balance trade relations by reducing U.S. tariffs on Indonesian exports from 32 percent to 19 percent, with specific exemptions for cocoa, rubber, and palm oil, while granting zero percent tariffs to 1,819 product lines.

In exchange, Indonesia committed to purchasing 50 Boeing aircraft and opening its market to U.S. shredded used clothing. The agreement eliminates all tariffs on U.S. dairy products and removes quantitative export limits. Indonesia also pledged to increase agricultural imports, targeting 2 million metric tonnes of wheat and 3.5 million tonnes of soybeans. To manage these volumes, the Indonesian government tasked the state-owned importer Berdikari with executing all feed-grain purchases starting in 2026.

Regulatory concessions include a Mutual Recognition Agreement for halal labels and exemptions from halal certification for U.S. cosmetics and medical devices. However, the Ministry of Coordinating Economic Affairs clarified that food and beverages must still be labeled if they contain non-halal ingredients to protect consumers.

While Edge Dairy Farmer Cooperative praised the market expansion, the soybean importers association Akindo warned that the high import targets could exceed domestic demand and disrupt supply balances.