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View all search resultsRI braces for US forced labor-linked tariffs while seeking OECD gains
Government estimates the final tariff burden on Indonesian goods exported to the US could reach about 18 percent, including a 10 percent tariff tied to forced-labor concerns.
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President Prabowo Subianto (left) speaks to United States President Donald Trump (right) during the signing of the US-Indonesia agreement on reciprocal trade (ART) on Feb. 19, 2026, in Washington. The trade deal locks in tariff rates and nontariff barriers to commerce between Indonesia and the US. (Courtesy of Presidential Secretariat/White House)
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akarta estimates the final tariff burden on Indonesian goods exported to the United States could reach about 18 percent, under a “stacking” mechanism that combines multiple levies.
The total would include an initial 10 percent tariff tied to forced-labor concerns, expected to take effect first, followed weeks later by an additional component linked to structural overcapacity, according to Susiwijono Moegiarso, secretary to the coordinating economy minister.
On the other hand, the government sees some benefits from the negotiations despite the tariff threat, including US backing for its accession process to the Organisation for Economic Co-operation and Development (OECD), a grouping of mostly advanced economies.
“Several commitments that have been agreed are seen as supporting Indonesia’s accession process to the OECD," Susiwijono said in a statement on Monday.
The final rate would still depend on product exemptions negotiated with Washington and the outcome of ongoing processes in the US, Susiwijono said. Countries affected by the measures, including Indonesia, will still be allowed to submit comments and present arguments before full implementation.
Read also: Indonesia prepares defense to US forced labor tariff threat
In separate event, Trade Minister Budi Santoso said that tariff proposals under consideration by US authorities remain “dynamic”, arguing that Jakarta has addressed Washington’s concerns through its legal safeguards against forced labor and existing trade arrangements, including the agreement on reciprocal trade (ART).
