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On 19 February 2026, the United States and Indonesia signed the Agreement on Reciprocal Trade (“Trade Agreement“). The two governments describe this new framework as a way to lower certain trade barriers, improve market access, and strengthen cooperation in strategic supply chain.

Under the Trade Agreement, Indonesia is expected to benefit from lowered U.S. tariffs, from 32% to 19%, for a range of Indonesian exports such as textiles, footwear, electronic components, and rubber-based products. This change is expected to influence the competitiveness of Indonesian exports in the U.S. market. Beyond tariff adjustments, the Trade Agreement aims to introduce easier market-access routes for Indonesian producers that meet the required labour, environmental, and transparency standards. The Trade Agreement is also expected to expand cooperation on critical minerals, particularly nickel and battery-related materials, which both governments viewed as essential in supporting supply‑chain resilience and developments in the global electric‑vehicle ecosystem.

These developments may offer new opportunities for Indonesian businesses, as well as businesses importing U.S. products to Indonesia, while also introducing new regulatory and compliance requirements for exporters, importers, and digital economy players operating across both jurisdictions. We take a closer look at these changes in the sections below.