Ease of doing business
theboardiQ Tariffs Dashboard:
Powering Mutually Beneficial Global Trade.
Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.
Implications
As of January 2026, the trade relationship between the United States and Indonesia has reached a pivotal moment with the finalization of the Agreement on Reciprocal Tariffs (ART). Following a year of intense negotiations, this deal seeks to balance a trade relationship that the U.S. previously labeled as non-reciprocal.
## Latest US Tariffs Update (January 2026)
In a major shift, the U.S. and Indonesia are scheduled to sign a formal trade pact by the end of January 2026. This follows the "Liberation Day" tariff threats of 2025 where a 32% blanket tariff was initially proposed.
Current Rate: Indonesian manufactured goods generally face a 19% tariff entering the U.S. (down from the 32% threat but higher than historical averages).
Exemptions: Key commodities not naturally produced in the U.S., such as palm oil, cocoa, tea, and coffee, have been granted tariff exemptions (0%).
Reciprocity: In exchange, Indonesia has agreed to eliminate approximately 99% of tariff barriers for U.S. agricultural and industrial goods, effectively opening its market of 280 million people to American products like beef, apples, and machinery.
## Major Companies & Sectors Impacted
The impact is divided between traditional manufacturing (facing headwinds) and resource-based sectors (finding relief).
Sector | Impact Level | Key Companies / Entities Affected |
Apparel & Textiles | High (Negative) | Pan Brothers, PT Sritex; burdened by the 19% tariff which makes them less competitive against Vietnam. |
Footwear | High (Negative) | PT Prima Eksekutif, KMK Global Sports; US accounts for ~34% of Indonesian footwear exports. |
Agriculture (ID) | Positive | Astra Agro Lestari, Sinar Mas (Golden Agri); Palm oil exemptions are a massive win for these conglomerates. |
Agriculture (US) | Positive | Tyson Foods, Cargill; Now have 0% tariff access to Indonesia's beef and grain markets. |
Mining/Energy | Mixed | PT Aneka Tambang (Antam), Freeport Indonesia; US is seeking secured access to critical minerals (Nickel) for EVs. |
## GDP and Economic Impact
Direct GDP Drag: Earlier assessments in 2025 predicted a 0.3% to 0.5% reduction in Indonesia's GDP growth due to the higher tariff wall.
2026 Outlook: Despite trade tensions, Indonesia's Financial System Stability Committee (KSSK) forecasts 5.4% GDP growth in 2026, supported by strong domestic demand and a surge in AI-related infrastructure investment.
Investment Shift: Higher U.S. tariffs have paradoxically accelerated "friend-shoring," with some U.S. firms relocating production from China to Indonesia to take advantage of the lower 19% rate compared to the much higher China-specific tariffs.
## Balance of Trade (BOT) YTD
Indonesia continues to maintain its long-running trade surplus, though the gap is narrowing as imports from the U.S. rise under the new deal.
Global Surplus: Indonesia recorded a surplus of $38.54 billion (Jan–Nov 2025 data).
With the US: The U.S. remains Indonesia's second-largest non-oil export destination (~11.5% share). However, the U.S. goods trade deficit with Indonesia stood at roughly $17.9 billion, a figure the ART deal is specifically designed to reduce by flooding the Indonesian market with U.S. exports.
Trend: Exports to the U.S. showed resilience, growing 9.45% in late 2025 despite the 19% tariff, suggesting that U.S. demand for Indonesian products remains inelastic for now.
## SWOT Analysis: Indonesia-US Trade 2026
Strengths | Weaknesses |
* Dominant global position in Palm Oil & Nickel. * Consistent trade surplus for 67+ months. * Strong domestic consumption base. | * Heavy reliance on U.S. market for labor-intensive goods (Textiles/Footwear). * "Unbalanced" reciprocity in the new ART deal. |
Opportunities | Threats |
* Becoming a hub for U.S. "China-plus-one" strategy. * Duty-free access for critical minerals for the U.S. EV supply chain. * Potential Free Trade Agreement with the EU. | * Retaliation: China or the EU may demand the same 0% import treatment Indonesia gave the U.S. * Competitiveness: 19% tariff may drive U.S. buyers to Vietnam or Cambodia. |
US Revised Tariffs
Country Tariffs
Balance of Trade
Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals
Tariff Rate for US
World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.
US Imports Guide
United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.
Investing in USA
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters
Sources : Forbes | USDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia | International Trade Administration
theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.
Economic
Relevance
Ranking
State | Info | Overall Rank | Agri | Innov | Mfg | Employ | Tax | Edu | GDP | F500 Rep | Trade Balance | Cost of Living | Disp Income |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Texas | 1 | 4 | 5 | 11 | 10 | 7 | 42 | 2 | 2 | 2 | 24 | 13 | |
North Carolina | 2 | 9 | 21 | 1 | 4 | 12 | 28 | 11 | 16 | 41 | 17 | 17 | |
Virginia | 3 | 32 | 24 | 6 | 2 | 28 | 7 | 13 | 6 | 34 | 35 | 3 | |
Florida | 4 | 21 | 11 | 15 | 1 | 4 | 35 | 4 | 7 | 40 | 30 | 37 | |
Washington | 5 | 16 | 3 | 36 | 28 | 45 | 9 | 9 | 15 | 9 | 43 | 1 | |
Missouri | 6 | 11 | 25 | 22 | 20 | 13 | 32 | 21 | 22 | 20 | 10 | 20 | |
Georgia | 7 | 15 | 26 | 9 | 3 | 26 | 34 | 8 | 9 | 43 | 26 | 19 | |
Minnesota | 8 | 6 | 10 | 47 | 6 | 44 | 8 | 20 | 10 | 33 | 33 | 9 | |
Ohio | 9 | 12 | 32 | 7 | 30 | 35 | 36 | 7 | 5 | 38 | 15 | 11 | |
Illinois | 10 | 5 | 23 | 31 | 23 | 37 | 16 | 5 | 4 | 47 | 32 | 7 |