Indonesia Does Not Follow Malaysia's Withdrawal from US Trade Agreement

The Indonesian government has stated that it remains committed to the Agreement on Reciprocal Trade (ART) with the United States. This position was affirmed by Haryo Limanseto, Spokesperson for the Coordinating Ministry for Economic Affairs, when asked about the possibility of Indonesia following Malaysia’s lead in withdrawing from the agreement.

Malaysia has formally withdrawn from the ART following the US Supreme Court’s decision to invalidate the policy. “Indonesia is still maintaining the ART. Each country has its own foreign trade policy,” Haryo said in a statement to Media Indonesia on Tuesday, 17 March.

At a Media Gathering organised by the Coordinating Ministry for Economic Affairs in Jakarta on Friday, 13 March, Haryo stated that the ART between Indonesia and the United States remains the primary foundation for bilateral trade relations between the two countries.

This reaffirmation responds to developments in ongoing trade investigation proceedings in the United States, which form part of the country’s legal administrative mechanisms. “In principle, this is a matter of legal administration in their country, so they must follow that investigation process. However, our position remains the Agreement on Reciprocal Trade (ART), so we will proceed through this process,” he said.

Malaysia became the first country to cancel the reciprocal trade agreement with the United States. Malaysian Minister of Investment, Trade, and Industry Johari Abdul Ghani announced on Sunday, 15 March, that the ART between the two nations is no longer in effect.

This decision followed the US Supreme Court’s ruling on 20 February 2026 invalidating President Donald Trump’s reciprocal tariff policy, which had previously been implemented under the International Emergency Economic Powers Act (IEEPA). The court determined that the president lacked the legal authority to impose broad tariffs under that legislation, thereby nullifying the basis of the trade agreement.

“The agreement is not suspended. It no longer exists, it is voided, and it is no longer valid,” Johari stated.

The Indonesian government will continue discussions with the United States following the Supreme Court’s annulment of the tariff policy, focusing on protecting national interests and ensuring export stability. The government has set a 0% tariff on imports of soybeans and wheat from the United States, with the Minister of Trade ensuring that this policy will not disrupt domestic industries whilst maintaining stable food prices.