INDEF Highlights Timing of ART Signature, Contends Government Ignored US Legal Process
JAKARTA – Andry Satrio Nugroho, head of the Centre for Industry, Trade and Investment at the Institute for Development of Economics and Finance (INDEF), has criticised the timing of the signature of the Agreement on Reciprocal Trade (ART) between Indonesia and the United States.
Andry contends that the government should have considered legal dynamics before agreeing to the pact. A court decision could potentially alter the legal foundation of the tariff policy that underpins the agreement.
“What I see here is not only a failure of negotiation, but also a failure of communication among relevant ministries,” Andry stated during an online discussion titled “Gains and Losses of the US-Indonesia Trade Agreement” held by INDEF on Friday (27 February 2026).
Andry explained that information regarding court proceedings and judgement schedules is accessible through the official website of the US Supreme Court. The judgement schedule had been publicised before the ART agreement was signed.
“The question then arises: why did Indonesia sign at precisely the same time, when the court timeline and judgement schedule were already publicly available?” he asked.
He added that a US Supreme Court decision invalidating the legal basis of the reciprocal tariff policy could affect the legitimacy of the ART. The agreement is built upon a tariff policy that is now declared to lack strong legal foundations.
Andry also noted the agreement contains various commitments with broad implications for domestic policy. These commitments include obligations to ratify various regulations, relaxation of non-tariff barriers, and opening access to imports of several agricultural and energy commodities.
He highlighted changes to domestic content requirements (TKDN), certification rules, and restrictions on non-tariff instruments such as import quotas and licensing. These policies cannot be applied selectively to only one country. Their impact will be felt across all of Indonesia’s trading partners.
Andry also cautioned that switching energy imports from longstanding partners to the United States cannot be done instantly without consequences. Many import contracts are long-term in nature.
Unilateral switching could trigger reactions from other partner nations. The consequences extend beyond the trade sector to other strategic cooperation arrangements.
He contends the government should consider next steps, including possible renegotiation or postponement of ratification. Changes in the legal situation in the United States are an important factor.
Andry stressed that the government still has room to evaluate the agreement since the ratification process is not yet complete.
He urged the government to use the available time to ensure national interests and protection of domestic industry remain priorities in all international trade agreements.