Fact Sheet: Trump Administration Finalizes Trade Deal with Indonesia

On February 19, 2026, President Donald J. Trump and Indonesian President Prabowo Subianto finalized a landmark trade agreement designed to boost American market access and achieve breakthroughs in manufacturing, agriculture, and digital sectors. The agreement commits Indonesia to eliminating tariff barriers on over 99% of U.S. products across various sectors and addressing numerous non-tariff barriers, including local content requirements, U.S. safety and medical device standards, and intellectual property issues. Indonesia will also remove barriers to U.S. agricultural products, exempting them from import licensing, and eliminate barriers to digital trade, such as tariffs on "intangible products" and ensuring a level playing field for U.S. electronic payment services.Furthermore, Indonesia has committed to joining the Global Forum on Steel Excess Capacity, cooperating on supply chain resilience, and implementing a forced labor import ban, alongside removing labor law restrictions on workers' rights. The deal also includes significant commercial agreements, with approximately $33 billion worth of Indonesian investment in U.S. agriculture, aerospace (including Boeing aircraft), and energy commodities. Freeport-McMoRan's mining license extension in Indonesia is expected to generate $10 billion in annual revenue, strengthening U.S. critical mineral supply chains.The United States will maintain a 19% reciprocal tariff rate for most Indonesian imports, with a 0% rate for certain products, and establish a mechanism for specific Indonesian textile and apparel goods to receive a 0% tariff linked to American cotton and man-made fiber textile inputs. This agreement aims to address the U.S. goods trade deficit with Indonesia, which was $23.7 billion in 2025, and is presented as a "forward-looking, expansive trade deal" that benefits American workers, exporters, farmers, and digital innovators.