August 12, 2026 | 07:37 pm
TEMPO.CO, Jakarta - Indonesia is currently subject to a 10 percent reciprocal tariff as a result of the US Section 301 investigation on issues of forced labor. This was confirmed by Trade Minister Budi Santoso on Wednesday, August 12.
Indonesia was previously subject to a 19 percent tariff before it was dropped to 18 percent. "After, the decision was annulled by the Supreme Court, resulting in a sweeping 10 percent tariff for 150 days," Budi said, as quoted from Antara.
This period ended on July 24, 2026, and the Trump administration initiated a subsequent investigation against a number of countries on two issues: forced labor and excess production.
The forced labor investigation has been concluded, resulting in a range of new tariffs.
"In the 60 countries involved, two tariffs were imposed. One was 12.5 percent, the other 10 percent. Indonesia is subject to a relatively low tariff of 10 percent. Why? Indonesia already has an ART (Agreement on Reciprocal Trade), is one of the reasons. So, the 10 percent tariff is now in effect, per July 24," he said.
Budi emphasized that the 18 percent reciprocal tariff previously set for Indonesia is no longer in effect and has been replaced by a new tariff provision.
Despite the new tariff, Budi said the Indonesian government is striving to lower the rate, with a zero percent tariff being the ultimate goal. "We are working to secure more favorable tariffs," he said.
According to Budi, Indonesia has a considerably advantageous position compared to other countries, including Thailand. "The Thai Trade Minister said they would meet with America at the end of this year to secure ART, while we have already finished," he added.
Read: US: 25 States Sue Over Trump's New Tariffs
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