BKPM Assures Indonesia Will Not Face US Boycott Over Economic Cooperation
Liputan6.com, Jakarta – Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, affirmed that Indonesia will not be targeted by a boycott from the United States (US) in trade and investment cooperation.
He assured that there is no agreement that could potentially involve Indonesia in a trade boycott scheme, as experienced by several other countries.
“There is no agreement (regarding a boycott). We continue to adhere to the principles of cooperation, free and active trade, and other principles, with the US and other institutions,” he said at BKPM, Tuesday (24/2/2026).
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He emphasised that the direction of the government’s policy under President Prabowo Subianto is very clear, especially in maintaining national independence without closing the door to global cooperation.
“Our President is a clear-minded person, President Prabowo is a clear-minded person,” he said.
He believes that communication in the fields of trade and investment is an important instrument to maintain Indonesia’s economic stability and competitiveness.
“Our independence is our business, there is no interference. But the fact that we must open communication in the context of trade and investment, that is a must,” he said.
Minister of Trade Budi Santoso: US 19% Tariff Will Not Disrupt Indonesian Exports and Trade Balance
Previously, the Minister of Trade of Indonesia, Budi Santoso, assured that the import tariff policy in the reciprocal trade agreement with the United States of 19% will not affect Indonesia’s export performance or the national trade balance.
He explained that so far, Indonesia’s exports still record a surplus, including with the US, which is one of its main trading partners. “Currently, we have a surplus. Our number one surplus is with America, number two is with India. So, there is no problem,” he said.
“Oh, no, no (impact from the 19% tariff),” Budi told reporters at Gambir Station, Tuesday (24/2/2026).
Furthermore, Budi said that in the trade agreement that has been agreed upon, Indonesia actually receives many benefits in the form of 0% tariffs for various export commodities. With these various facilities, he believes that Indonesia’s export performance has the potential to grow higher.
“Our number one surplus is with America, number two is with India. So there is no problem. Secondly, from the agreement, we get a lot of 0 percent tariffs. It should actually increase. Indeed, our hope is to increase exports,” he said.
Responding to the notion that Indonesia’s trade balance could be affected by the US tariff policy, Budi denied it again. He also added that imports from the US are not a major problem because most of the goods that enter are commodities that are indeed needed domestically.
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Indonesia Officially Signs 19 Percent Reciprocal Tariff Agreement with the US, Thousands of Products Regulated
Previously, Indonesia officially agreed to a trade agreement with a 19 percent reciprocal tariff with the United States (US). There are 1,819 tariff items regulated in the trade agreement between the two countries.
The signing of the Agreement on Reciprocal Trade (ART) was carried out by President Prabowo Subianto and US President Donald Trump. The agreement was signed after the inaugural agenda of the Gaza Peace Council or Board of Peace (BoP) meeting.
“Indonesia and the United States agreed to strengthen economic cooperation,” said Coordinating Minister for Economic Affairs, Airlangga Hartarto, in a virtual press conference, Friday (20/2/2026).
He recounted the negotiation process which began in April 2025 when Donald Trump announced that Indonesia would be subject to a 32 percent reciprocal tariff. The negotiations resulted in a reduction in the tariff to 19 percent with various other additional provisions.
“90 percent of the documents sent by Indonesia were fulfilled by the United States. So, Indonesia’s proposals were fulfilled by the United States as outlined in the Agreement on Reciprocal Tariff,” he said.