Government Ensures Indonesia–US ART Will Strengthen National Exports and Remain Within the Sovereignty Corridor

KOMPAS.com - In response to various views emerging about the reciprocal tariff agreement (Agreement on Reciprocal Trade/ART) between Indonesia and the United States, the government emphasises that ART is part of an economic diplomacy strategy to strengthen access to export markets for the country’s leading commodities. The agreement also addresses a range of non-tariff barriers that have been highlighted in bilateral trade relations. Spokesperson of the Coordinating Ministry for Economic Affairs, Haryo Limanseto, said that during the ART negotiations with the United States, Indonesia conducted cross-ministerial internal coordination. ‘The agreement will take effect 90 days after both countries have provided written notice that all national legal procedures have been completed,’ Haryo said in a press release on Wednesday, 4 March 2026. He added that Indonesia and the US have also agreed to form a bilateral consultation mechanism to discuss issues related to ART implementation. Among these are zero per cent tariffs on 1,819 tariff lines for agricultural products and strategic industrial sectors, such as palm oil, coffee, cocoa, spices, rubber, electronic components and aircraft components, as well as a zero per cent tariff for textile and apparel products from Indonesia. The policy is projected to deliver tangible benefits to more than four million workers in the related sectors. Indonesia remains committed to an outward-looking, independent foreign policy, not bound to any power bloc, and maintaining full sovereignty to determine national policy. Moreover, Indonesia continues to actively engage in economic relations with various trading partners, both through bilateral, regional, and multilateral agreements. The commitments agreed by both sides are collaborative and aimed at alignment, with each decision subject to domestic processes and in line with national law and Indonesia’s constitutional mechanisms. In addition, both sides have equal rights to terminate the agreement through written notice following consultation, ensuring the ART arrangement remains within the framework of sovereignty and national interests of Indonesia.