Addressing a Range of Emerging Issues, Government Affirms Indonesia–US ART Is Based on Mutual Benefit

In addressing a range of perceptions circulating publicly about the Agreement on Reciprocal Trade (ART) between Indonesia and the United States (US)—including its substance, its impact on domestic industry, and its implications for sovereignty and long-term economic interests—the Government has asserted that the negotiating steps taken were measured to preserve the competitiveness of national export products and to protect livelihoods in labour-intensive sectors affected by tariff policies.

Through the negotiations, Indonesia and the US have signed the ART agreement, which sets tariff arrangements and provides tariff exemptions (0%) for 1819 agricultural and essential industrial products, such as palm oil, coffee, cacao, spices, rubber, electronic components and aircraft parts, as well as a 0% tariff for Indonesian textile and apparel products.

In a statement, Juru Bicara Kemenko Perekonomian Haryo Limanseto said the Government opted for diplomacy and intensive negotiation rather than retaliation, which could place greater pressure on the national economy, and as a result, on 15 July 2025 it was announced that the Reciprocal Tariff (Tarif Resiprokal) was reduced from 32% to 19%, as set out in the Joint Statement on the ART Framework, which subsequently fell to 15% in line with the latest US government policy establishing global import tariffs for various countries.

Trade Agreement with the US Does Not Nullify Publisher Rights

Furthermore, one of the issues widely discussed concerns publisher rights. The Government emphasises that under ART, Indonesia does not abolish the obligation to cooperate between Digital Platform Companies (DPCs) and national press companies. The agreement does not require mechanisms such as paid licensing, revenue sharing, or sharing aggregated data of news users for US-based DPCs, while cooperation can still occur through other schemes agreed together, including voluntary agreements. To date, there has been cooperation between DPCs and 34 national companies.

The Government is also studying fiscal instruments such as the Digital Services Tax and the optimisation of PMSE VAT, in line with OECD practices, to support strengthening journalism and national digital literacy.

Additionally, regarding the clause on transferring personal data, there is no obligation to transfer personal data en masse because data protection remains subject to Indonesian law. Personal data transfers, in principle, occur in a limited manner within the digital ecosystem when users in Indonesia access applications provided by global companies, including those based in the US. Accordingly, the data in question is commercial in the context of digital trade activities. Data transfers are not personal data held by the Government (Dukcapil) to other countries.

Moreover, the process also occurs within the framework of utilising digital services as is common in digital economy practice, and continues to refer to the provisions of applicable laws and regulations in Indonesia, particularly regarding personal data protection.

Adjustments to Trade Instruments Do Not Remove Import Oversight

Furthermore, regarding import policy issues, the Government stresses that adjustments to import governance are a step to strengthen regulatory certainty and trade stability, including in relations with the US. The policy continues to go through negotiations that take national interests, domestic market conditions, and do not remove import oversight.

The Government maintains policy instruments in line with national provisions and international commitments, reinforced by cross-sector coordination to sustain long-term growth. Indonesia and the US also agreed to establish a Board of Council as a bilateral consultative mechanism to discuss issues related to ART implementation.

ART Agreement Does Not Remove Authority of the National Payment System

Next, to address issues related to the payment system, the Government states that the ART between Indonesia and the US contains no provisions that abolish the authority of the national regulator to regulate the domestic payment system. Indonesia continues to allow cross-border transactions via international payment networks (Visa Inc, Mastercard, UnionPay, JCB, and American Express) as practice, while domestic transactions remain within Bank Indonesia’s regulatory framework. The ART does not confer special privileges, does not require the use of a particular brand, nor does it remove the obligation to comply with licensing, risk management, data security, and consumer protection in Indonesia.

The Government also continues to ensure that QRIS strengthening, the National Payment Gateway (GPN), and BI-FAST remain part of a strategy to safeguard the sovereignty of the national payment system while promoting efficiency and financial inclusion. Any participation by global networks is conducted on the basis of equality and healthy competition, without diminishing the role of domestic infrastructure in processing transactions domestically, to ensure a stable, competitive, and sustainable payments ecosystem in line with national interests.

Regulation and Standardisation Arrangements That Are Equitable

Meanwhile, in relation to regulation and standardisation, the Government states that adjustments to regulation and standardisation are aimed at improving quality and governance certainty. The Domestic Content Exemption (TKDN) applies only to commercial goods, while Government projects remain subject to existing rules. Moreover, the ART does not impose a requirement for Indonesia to adopt the interests or sanctions of other parties, kare