Indonesia assures commitment to ART agreement amid US trade investigation
Indonesia remains committed to the Agreement on Reciprocal Trade (ART) amid a US trade investigation into several trading partners, according to Haryo Limanseto, spokesperson for Indonesia’s Coordinating Ministry for Economic Affairs.
The US investigation is being conducted under Section 301 of the Trade Act of 1974, which authorises the US to investigate trade practices deemed unfair and potentially harmful to domestic industry.
“In principle, this is a matter of legal optimisation in their country. They must follow from Section 122 to Section 301 and conduct an investigation. But our anchor is that both countries remain bound by the ART. So we will simply proceed with this process,” Haryo said at his office in Jakarta on Friday.
The Indonesian government has already communicated with the US Trade Representative (USTR) regarding this measure. Indonesia will continue to uphold the clauses agreed upon in the ART. Haryo expressed optimism that the government can explain several issues of concern to the US, including allegations of excess manufacturing capacity that allegedly contributed to the US trade deficit.
“So we will follow the investigation process along with 15 other countries, but we will maintain our position on the ART and hope we can more easily explain this to them. This is a process we must go through, so we need not be concerned. They have their own legal administration,” he added.
The Indonesian government is also overseeing the ART ratification process domestically. Haryo stated that the government will consult with the Indonesian Parliament to ensure the agreement is promptly enacted into law.
Regarding another US investigation into allegations of forced labour in supply chains, Haryo views this issue as having been previously discussed during ART negotiations.
Currently, a temporary global US tariff of 15 per cent is in effect for 150 days.
The US previously announced a new trade investigation into several countries, including Indonesia, following a court ruling that a previous reciprocal tariff policy was unlawful.