WASHINGTON D.C February 23, 2026 – The United States has clinched a landmark reciprocal trade agreement with Indonesia that removes tariff barriers on over 99% of American products, unlocking access to the world’s fourth-most populous country with more than 280 million consumers.
President Donald Trump’s administration announced the Agreement on Reciprocal Trade with Indonesia last week. The pact, detailed in an official release by the Office of the United States Trade Representative (USTR) on Monday, is being hailed as a major boost for U.S. agriculture, manufacturing, and digital services.
“This historic deal deepens the economic partnership with Indonesia, a key Indo-Pacific partner, and creates commercially meaningful opportunities for American farmers, manufacturers, and producers,” the USTR stated.
Key benefits for U.S. exporters include:
– Agriculture and Livestock : Full market opening for dairy, beef, pork, grains (corn, sorghum, barley), and co-products. Indonesia has committed to an annual purchase of 50,000 metric tons of U.S. beef — potentially worth US$400–500 million in the near term — and the removal of import licensing hurdles and plant approval restrictions for pork and other meats.
– Biofuels : Nationwide adoption of 10% ethanol blends in Indonesia could open a market of up to 900 million gallons (with potential demand nearing 1 billion gallons), allowing U.S. ethanol to fill supply gaps while Indonesia prioritises its domestic production.
– Digital Trade : Elimination of tariffs on intangible digital products, guaranteed cross-border data flows, and support for a permanent moratorium on digital customs duties.
– Intellectual Property Protections : Safeguards for common food names such as “parmesan” and “feta”, preserving export opportunities for U.S. producers.
The agreement also tackles non-tariff barriers and streamlines Indonesia’s import licensing regime.
American industry leaders have responded with strong praise:
“Indonesia is the fourth-most populous country in the world and a critical market for U.S. dairy farmers. Thank you to Ambassador Greer and the USTR team for securing expanded access that will directly translate into stronger demand for U.S. dairy products,” said Gregg Doud, President and CEO of the National Milk Producers Federation.
National Cattlemen’s Beef Association President Gene Copenhaver added: “When combined with the Taiwan trade deal signed last week, U.S. cattle producers now have more market access than they have had in decades.”
U.S. Meat Export Federation President Dan Halstrom highlighted that the 50,000-ton beef commitment aligns with market potential and will incentivise full implementation of the deal.
Growth Energy CEO Emily Skor and Renewable Fuels Association President Geoff Cooper both welcomed the ethanol provisions, while digital trade groups including the Business Software Alliance praised the breakthrough in data and digital services policy.
The USTR release noted that the deal follows a similar ethanol-focused agreement with Guatemala and reflects the Trump administration’s “America First” approach to reciprocal trade.
For Malaysia and the broader ASEAN region, analysts say the pact could intensify competition in agricultural and digital exports while strengthening economic ties between Washington and Jakarta — Indonesia being ASEAN’s largest economy.
The official announcement was accompanied by a collage of positive media coverage and images from the signing ceremony featuring President Trump and Indonesian officials.
Full details are available on the USTR website.
Source: U.S. Trade Representative Office press release, Feb 23, 2026
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