Airlangga Reveals Two Main Issues in Indonesia's Response to US Trade Investigation

Coordinating Minister for the Economy, Airlangga Hartarto, stated that the Indonesian government has prepared a written response to the US trade investigation, to be submitted on 15 April 2026, in reference to the Section 301 policy of the US Trade Act targeting national exports.

He highlighted two main issues under scrutiny: excess production capacity and allegations of forced labour practices in product supply chains.

“First, the US is applying Section 301 in trade, which involves investigating Indonesian exports. Two things: excess capacity, meaning overproduction, and second, related to importing raw materials linked to forced labour,” Airlangga said at the Coordinating Ministry for the Economy in Jakarta on Monday, 13 April 2026.

In response to the investigation, the government is now focusing on preparing an official reply before proceeding to the next stage. Airlangga also explained that the investigation is commodity-based, not general regulations.

“No, it’s about excess capacity. For example, excess cement. We don’t export cement to the US. So we just respond accordingly,” he said.

From the trade perspective, Trade Minister Budi Santoso stated that the government is preparing a submission comment document to be delivered no later than 15 April 2026, as an initial response to the investigation.

“So on the 15th (April), we must submit regarding the initiation or Section 301 investigation. Everything has been prepared; generally, there are no issues, and we are making defences, including that Indonesia has no policies causing structural excess capacity,” Budi said.

In the submission, the government provides arguments that Indonesia’s trade surplus with the US arises from differences in economic structures and high demand from the US market, not from policies creating excess capacity.

Budi added that most investigated commodities are those experiencing surpluses. Indonesia’s surplus with the US is seen as resulting from economic structure differences and high US domestic demand for Indonesian products.

According to him, Indonesia’s manufacturing production also follows market demand (market-driven), thus not causing trade distortions. The government has also prepared subsequent stages after the submission, including public hearings and consultations with US authorities.