JAKARTA: Indonesia’s textile products will not be exempt from United States tariffs despite earlier talks seeking exemptions for several key commodities, according to Coordinating Economy Minister Airlangga Hartarto, who also heads the team for negotiating a reciprocal tariff agreement with Washington.
“Textiles are not [considered natural products]. So [the tariff exemptions apply to] tropical natural resources,” Airlangga said in Jakarta on Friday (Dec 26), as quoted by Kompas.com, noting that the products granted exemptions were largely natural resource commodities such as palm oil.
Textiles and textile products, which account for a significant portion of Indonesia’s exports to the US, would therefore remain subject to a 19 per cent tariff once it comes into force.
The senior minister added that the decision would be included in the Agreement on Reciprocal Trade (ART), which is yet to conclude following an executive order on reciprocal tariffs issued by President Donald Trump in early April.
Airlangga, who met US Trade Representative Jamieson Greer on Monday and reportedly resolved all substantive issues in the tariff negotiations, did not disclose details of the full list of exemptions, emphasising that the technical aspects were still being finalised.
Following their meeting, Airlangga announced that the ART, which President Prabowo Subianto and US President Donald Trump are expected to sign in January 2026, would not constrain domestic policy space and was designed to deliver “balanced economic benefits” for both countries.
“No Indonesian policies are restricted by this agreement […], which is purely commercial and strategic in nature,” the senior minister told an online press briefing on Tuesday, stressing that the pact contained no provisions that limited Jakarta’s ability to pursue trade deals with other countries.
He also said the US was seeking access to Indonesia’s critical minerals and had agreed to grant exemptions for key Indonesian export commodities such as palm oil, tea and coffee.
Washington imposed a 19 per cent tariff on most Indonesian goods under a preliminary “framework agreement” in July, down from 32 per cent previously threatened in April.
The move followed an earlier understanding through which Indonesia agreed to remove tariff and nontariff barriers for US companies and purchase around US$19 billion in American goods to help narrow the trade gap.
On Dec 15, Airlangga said “nothing new” would emerge in the deal beyond what had been agreed in July.
Despite a joint statement released at the time, Jakarta and Washington have yet to sign the ART. - The Jakarta Post/ANN
