DEN: US Supreme Court Decision Does Not Invalidate Indonesia-US Trade Agreement, Here's Why

The United States Supreme Court cancelled former President Donald Trump’s import tariff policy on 20 February 2026. This decision has created uncertainty for global trade, including for Indonesia, which had previously agreed to a reciprocal tariff of 19% on 19 February 2026.

Mari Elka Pangestu, Vice Chair of the National Economic Council (DEN), stated that the Supreme Court’s decision does not automatically invalidate the trade agreement between Indonesia and the United States.

However, the agreement has not yet been implemented as it is still awaiting ratification and discussion of amendments.

“The essence is that the Supreme Court’s decision does not automatically mean our agreement is invalidated. The agreement still remains in force in the sense that it is still in process, but it is not automatically invalidated by the Supreme Court’s decision,” Mari Elka said during a Squawk Box CNBC Indonesia programme on Friday (27 February 2026).

Mari explained that the agreement cannot be implemented until all ratification processes are completed in each country. After both countries complete the ratification process, the agreement will become effective 90 days later.

Therefore, even if negotiations on amendments are completed soon, implementation depends on the formal procedures that must be followed in accordance with legal requirements in Indonesia and the United States.

“Then there will be a ratification process that must be carried out by each country and after ratification is completed, only then 90 days later does the agreement become effective,” she said.

According to her, if Indonesia is able to complete the amendment and ratification process faster than other countries, Indonesia’s position would be relatively stronger because it would offer regulatory certainty to business actors.

“Because all exporters, investors, and buyers are waiting. Because previously the direction was clear, those who negotiated got this, those who didn’t negotiate could get that. Now it’s become uncertain. Hopefully faster and better in the sense that what becomes our advantage is certainty,” she said.