February 23, 2026 | 11:31 am
TEMPO.CO, Jakarta - Indonesia's Coordinating Ministry for the Economy stated that most of the United States goods that receive a 0 percent import duty facility are industrial raw materials. "These products are actually very much needed by domestic business actors, including MSMEs," said the Spokesperson of the Coordinating Ministry for the Economy Haryo Limanseto in a written statement on Sunday, February 22, 2026.
Haryo made the statement in response to Indonesia's plan to eliminate tariff barriers for more than 99 percent of U.S. goods exported to the country. The products include agricultural commodities, health products, marine products, information and communication technology, automotive, and quality chemicals from the U.S.
Haryo said that most goods that receive a 0 percent tariff facility are input goods, raw materials, capital goods, and industrial components. He says these products are essential for local business operators to produce high-quality goods at competitive prices for both domestic and export markets.
The Indonesian government, he said, is allowed to apply additional import duty instruments such as safeguards, anti-dumping, and anti-subsidy in accordance with WTO rules if there are trading activities that threaten the existence and sustainability of local industries.
Haryo continued, the Indonesian and U.S. governments have the Council on Trade and Investment forum, which will periodically discuss the implementation of this agreement. The discussions also cover the significant surge in imports that has disrupted market stability and trade in both countries.
Regarding the tariff relief amount, Haryo said that Indonesia has applied a relatively small most-favored-nation (MFN) tariff burden with an average effective tariff rate of around 8.1 percent.
Furthermore, Haryo mentioned that through various free trade agreements, such as FTAs or CEPAs, Indonesia has applied a 0 percent tariff with other main partner countries. He said that trading partners already bound by agreements with Indonesia represent about 80 percent of Indonesia's total trade.
Read: Some US Goods Exempt from Indonesia's Local Content Rules
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