Indonesia-US tariff talks continue over excess capacity
Airlangga Hartarto said labour-intensive Indonesian products face a 10% tariff, while bilateral trade rose 12% in January-August 2026.
Indonesia is still negotiating its Agreement on Reciprocal Trade (ART) with the United States, with excess capacity remaining under discussion, Coordinating Minister for Economic Affairs Airlangga Hartarto said in Jakarta on 27 October 2026. He said Indonesian goods from labour-intensive industries face a 10% tariff.
Airlangga said work on almost all parts of the agreement was complete. Indonesia was continuing negotiations to reach a deal that would benefit both countries, but he could not give a date for the talks to conclude.
Although he expressed hope that the outstanding issues could be resolved before long, Airlangga said Indonesia was still waiting for the United States. He did not confirm that an agreement would be finalised soon.
Despite the unfinished negotiations, Airlangga said bilateral commerce remained healthy. He put trade between the two countries at Rp32.34 billion for January-August 2026, up 12% from a year earlier. He also said US investment had increased, without providing a figure.
