Indonesia a High-Profile Nation Globally, Trade Negotiations with US Easier
Indonesia holds a strategic and high-profile position on the international stage. Its active role in promoting stability, peace, and international cooperation further strengthens Indonesia’s leadership position in the eyes of the world.
This was stated by Coordinating Minister for the Economy Airlangga Hartarto during the Focus Group Discussion (FGD) on The Agreement on Reciprocal Trade (ART) Indonesia - United States at the Senate Hall of Universitas Gadjah Mada, Yogyakarta, on Wednesday (15/4/2026).
In various global forums, Indonesia is viewed as an influential and credible partner, often becoming a priority in dialogue and strategic negotiation processes.
“This may be what makes it easier for us to complete all negotiations. If Indonesia were not high-profile, it would not be a priority. With America, for example, Indonesia actually has a positive trade balance of USD 20 billion, yet Indonesia remains a priority,” said Airlangga.
Airlangga emphasised that the US Supreme Court ruling does not invalidate the agreement with Indonesia, as the agreement’s clauses have fulfilled legal processes in each country. However, following the US Supreme Court ruling, the US government now requires additional legal basis beyond Section 122 of the US Trade Act, leading to the launch of a Section 301 investigation regarding alleged dumping and other issues, focusing on excess capacity and forced labour, in which Indonesia is included in the investigation process.
The Indonesian government has prepared a response to be submitted on 15 April 2026. This process will continue to the consultation stage with the USTR on 12 May 2026.
The entire negotiation process for The Agreement on Reciprocal Trade (ART) with the United States is consistently conducted through intensive communication with various stakeholders. The government also consistently reports developments at each negotiation stage to the public through the mass media, as a demonstration of transparency and accountability in the Indonesia-US ART process.
The US holds a position as the consistent contributor to Indonesia’s highest trade surplus and one of the largest export destinations for Indonesia.
“Next, with America. Why is America important? Because the highest positive trade balance is actually with America. America imports Indonesian manufactured products. Palm oil, electronics, shoes, textiles, furniture, and others. That’s what distinguishes America from other countries,” he explained.
A series of bilateral meetings have resulted in tariff reductions on several Indonesian products, including adjustments from the previous 32% to around 19% for certain commodities, as well as opportunities for tariff exemptions (0%) for 1,819 selected products.
This policy provides protection as well as a strong boost to domestic labour-intensive industries that absorb around 5 million workers. In addition, bilateral economic cooperation with the US is further strengthened in various strategic sectors, including food, industry, energy, and technology, while promoting enhanced cooperation in the digital economy, economic security, and resolution of non-tariff barriers.
Indonesia actively participates in global forums such as IEU-CEPA, RCEP, I-EAEU CEPA, BRICS, G20, OECD, RCEP, ASEAN, and CPTPP. At the same time, tariff negotiations with the United States also open opportunities for increased exports of labour-intensive industries and job creation.
The government continues to strengthen bilateral economic cooperation between Indonesia and various partner countries. Several agreements have been successfully completed, including with Japan, Pakistan, Palestine, Chile, Australia, Mozambique, Korea, Iran, Peru, Canada, and Tunisia.
Meanwhile, several other negotiations are still ongoing, including with MERCOSUR, the Gulf region (Gulf countries), as well as Pakistan, Bangladesh, Sri Lanka, Morocco, Turkey, and Uzbekistan, all of which demonstrate a commitment to completing the process in the near future.
Entering the second quarter of 2026, Indonesia’s economy is in a strong position. A combination of controlled inflation, a trade surplus that has lasted for 70 consecutive months, and high consumer confidence creates a solid foundation for economic growth.
On the other hand, the financial sector continues to show solid performance, reflected in the growth of bank deposits and stable credit expansion.
“Our poverty rate has fallen to 8.25%. Our Gini ratio has decreased, unemployment has also fallen. And job creation throughout 2025 was 2.71 million new workers,” he explained.
Airlangga emphasised that various priority programmes of President Prabowo Subianto are designed to provide direct benefits to the community, especially low-income groups. The Free Nutritious Meals programme and the strengthening of the Red and White Cooperatives at the village level are part of the government’s efforts to enhance public welfare, maintain stability in the prices of basic necessities, and drive regional economic growth.