Indonesia-US ART in Baby Language (Detailed)

• Yes for legal authority: the Court held IEEPA does not authorize this tariff program.
• Important limit: the Court did not say all tariffs are illegal; it said this specific legal basis (IEEPA) cannot carry these tariffs.

• The ART Schedule 2 language tied many lines to a reciprocal-tariff framework that had used IEEPA executive orders.
• After the Supreme Court ruling, those IEEPA tariff orders are no longer a valid tariff legal basis.
• On February 20, 2026, the White House announced a temporary 10% additional duty under Trade Act section 122 (effective February 24, 2026), with exceptions in annexes.
• Working interpretation: from February 24, 2026, most Indonesia-origin goods are in the temporary 10% bucket (unless an exception or another duty applies), not an automatic 19% IEEPA bucket.

• No automatic cancellation: USTR said the Administration remains confident bilateral trade agreements (including ARTs) remain in effect.
• But tariff mechanics changed: US now needs a valid domestic law path to apply country-specific tariff outcomes promised under ART.
• Non-tariff, security, and commercial commitments in ART still matter politically and for future tariff treatment design.

• For tariff authority under IEEPA: yes, that legal route was rejected by the Court for this reciprocal-tariff program.
• For order text as a whole: the February 20, 2026 proclamation says EO 14257 and EO 14360 are superseded to the extent inconsistent with the new section 122 action.
• Practical customs answer: the IEEPA tariff lane cannot be the current legal engine for collecting the old reciprocal-tariff rates after the ruling; section 122 is the temporary engine.

• 1.1(1): Indonesia must apply import duty for US-origin goods based on Schedule 1.
• 1.1(2): US must apply revised reciprocal tariff rate for Indonesia-origin goods based on Schedule 2.

• Indonesia cannot block US imports using quota-style tools (including import licenses used like quotas, commodity-balance style controls), except where WTO GATT allows.

• 5.1(1): If US places restrictive measures on a third country for economic/national security and notifies Indonesia, Indonesia should adopt measures with equivalent restrictive effect to address shared concerns.
• 5.1(2): At US request, Indonesia should act against unfair practices by third-country-controlled firms operating in Indonesia when those practices hurt US trade (below-market exports, export surges, or reduced US exports).
• 5.1(3): Indonesia should adopt similar restrictive-effect measures as US shipping/shipbuilding policies to encourage shipbuilding and shipping by market economy countries, and discuss the structure/effects of those measures.

• 5.2(1): Indonesia cooperates to restrict transactions with BIS Entity List and OFAC-listed persons/entities (under domestic law framework).
• 5.2(2): Indonesia builds a national security review mechanism for inbound investment and cooperates with US on investment security.
• 5.2(3): If US sees Indonesia as cooperative, US may consider that in export controls/investment review administration.
• 5.2(4): Indonesia should align with US controls on sensitive technologies and prevent “backfilling” that undermines US controls.

• 5.3(1): US works with Indonesia to streamline defense trade.
• 5.3(2): Indonesia must enforce anti-transshipment/anti-circumvention and enter duty-evasion cooperation arrangement with US.
• 5.3(3): If Indonesia signs a new FTA/preferential agreement with a country that jeopardizes essential US interests, US may terminate this ART (after consultations fail) and reimpose EO 14257 reciprocal tariff treatment.

• 6.1(1): Indonesia facilitates US investment in critical minerals/energy/infrastructure and gives treatment no less favorable than local investors in like circumstances.
• 6.1(2): US agencies (EXIM/DFC, if eligible) may consider financing support in critical sectors.
• 6.1(3): Indonesia facilitates job-creating greenfield investment in US.

• Indonesia SOEs should buy/sell using commercial logic, not political favoritism.
• No discrimination against US goods/services, and limited subsidy-style support except public-service mandate.
• On US written request, Indonesia provides subsidy/non-commercial assistance info and takes action on distortive impacts.

• US commits to a mechanism so certain Indonesian textile/apparel goods can get zero reciprocal tariff rate.
• The volume is linked to Indonesian use of US textile inputs (for example US cotton/man-made fibers).

• Indonesia facilitates purchases by Indonesian firms of US-origin goods listed in Annex IV.

Annex I - Schedule 1 (Indonesia tariff schedule for US-origin goods)

• Uses ICTB 2022 structure and meanings.
• Staging categories: EIF (duty goes to zero at entry into force), A (stays zero), TRQ (quota-based lane), Z (normal applied MFN lane).
• TRQ administration rules: transparent, fair, first-come-first-served, non-discriminatory, and published in advance.

Annex I - Appendix 1 (TRQ details)

• Pork products: 3,000 MT duty-free in-quota each year; above quota goes to category Z treatment.
• Distilled spirits: 400 MT in-quota at 5% duty each year; above quota goes to category Z treatment.
• Wine and related products: 1,985 MT in-quota at 5% duty each year; above quota goes to category Z treatment.

Annex I - Schedule 2 (US tariff schedule for Indonesia-origin goods)

• Goods in Schedule 2A: no additional reciprocal tariff under EO 14257.
• Goods in Schedule 2B: reciprocal tariff rate is 0 (EO 14360 lane).
• All other Indonesian-origin goods: additional reciprocal tariff is no higher than 19%, and this is on top of normal US MFN duty.

• Contains a list of 40 cheese terms (for example cheddar, mozzarella, parmesan, swiss) and 10 meat terms (for example bratwurst, prosciutto, salami).
• Connects to main text Article 2.5 so Indonesia does not block US market access just because those names are used.

Section 1 (Art 1.1)

• 1.1 Other Taxes and Fees: Indonesia reviews/adjusts internal taxes so imported like-products are not hit harder than domestic like-products.

Section 2A - Industrial and core non-tariff rules (Art 2.1 to 2.9)

• 2.1 Import Licensing: submit WTO import-licensing questionnaire each year.
• 2.2 Local Content: exempt US firms/goods from local content rules and forced domestic-spec requirements.
• 2.3 Testing/Certification: accept accredited US conformity routes and remove duplicative tests.
• 2.4 Cabotage exemptions: shipping/logistics carve-outs to reduce access frictions.
• 2.5 Medical devices/pharma: accept FDA-related approvals/certificates and reduce repetitive reauthorization burdens.
• 2.6 Motor vehicles/parts: accept US federal safety/emissions pathways and compliance procedures.
• 2.7 Remanufactured goods: reduce restrictions on remanufactured imports.
• 2.8 Worn clothing: adjust restrictive treatment in this category.
• 2.9 Halal (manufactured goods): streamline recognition and avoid unnecessary certification burdens.

Section 2B - Agriculture and SPS-heavy rules (Art 2.10 to 2.23)

• 2.10 Import licensing for food/ag: exempt US food/ag from commodity-balance and key licensing regimes; use automatic licensing only.
• 2.11 Certificates/system recognition: recognize US SPS and accept US official certificates with controlled change process.
• 2.12 Facility registration/listing: simplify dairy/meat/aquatic facility and certificate treatment.
• 2.13 Prior notice/time limits: reduce timing frictions and arbitrary expiration barriers.
• 2.14 MRLs: science/risk-based approach and proportionate handling of non-compliance.
• 2.15 FFPO recognition: provide recognition and transparent adverse-action procedures.
• 2.16 Agricultural biotechnology: process LLP events and biotech approvals with predictable procedures.
• 2.17-2.20 Horticulture/animal access + disease protocols: timelines and science-based handling (including HPAI/ASF areas).
• 2.21-2.22 Live animals e-signature and halal food/ag: reduce frictions and unnecessary requirements.
• 2.23 Bioethanol: avoid measures that prevent US ethanol imports and support blend-policy rollout.

Section 2C - GI, IP, services, regulation, labor, environment, customs (Art 2.24 to 2.46)

• 2.24 GI procedures: transparent fair GI process and safeguards against over-broad protection.
• 2.25-2.26 IP treaties/issues: implement listed treaties and make practical IP-enforcement upgrades.
• 2.27 Onshoring export proceeds: adjust treatment to reduce distortion against US trade/investment flows.
• 2.28 Foreign investment restrictions: reduce discriminatory barriers.
• 2.29 Payment networks/chip standards: keep room for international networks and accepted chip standards.
• 2.30 Other services: ease delivery-services limits, keep licensing fees proportionate, and avoid new digital/service constraints.
• 2.31 Good regulatory practices: publication, consultation, evidence-based design, and review of rules.
• 2.32-2.33 Labor law + enforcement: strengthen legal framework and inspectorate enforcement tools.
• 2.34-2.40 Environment/fisheries/wildlife/CITES: stronger governance and enforcement obligations.
• 2.41-2.46 Customs operations: express shipments, advance rulings, pre-shipment inspection, pre-arrival data, proprietary-data protection, and customs-officer incentive governance.

Section 3 (Art 3.1 to 3.3)

• 3.1: commitments on intangible products/electronic transmissions.
• 3.2: commitments on data transfer treatment.
• 3.3: requirements framework for digital services providers.

Section 5 Security in Annex III (Art 5.1 to 5.5)

• 5.1 Steel excess capacity cooperation: join forum and act on overcapacity impacts.
• 5.2 Equipment/platform security: secure ICT/logistics ecosystem and supplier integrity.
• 5.3 Export controls: robust control framework, screening, data sharing, and enforcement.
• 5.4 AD/CVD cooperation: better circumvention-related cooperation.
• 5.5 Other commitments: steps on nuclear liability framework commitment.

Section 6 Commercial in Annex III (Art 6.1 to 6.5)

• 6.1 Critical minerals: remove restrictions and cooperate on critical-mineral supply chains.
• 6.2 Strategic investment: facilitate outbound investment to US with minimum indicative value target.
• 6.3 Industrial cooperation: apply equal legal requirements to industrial parks/facilities.
• 6.4 Energy purchases: facilitate approvals for increased US energy purchases.
• 6.5 Investment: support selected project cooperation (including energy/infrastructure tracks).

• Headline: Indonesia supports commercial arrangements to import US goods/services with indicative total up to USD 33 billion.
• Industrial goods: includes US energy, industrial commodities, manufactured goods, aerospace; energy-related value track at USD 15 billion, aerospace/commercial aircraft track at USD 13.5 billion.
• Agricultural goods: value track at USD 4.5 billion, with annual volume markers for products including cotton, soybeans, soybean meal, wheat, apples, beef, citrus, corn, corn gluten meal, ethanol, grapes, and rice (as listed).
• Text in Annex IV includes a safeguard concept: if volume targets are missed but US finds no Indonesian trade barrier caused that miss, US should not automatically treat Indonesia as in breach for those lines.