Indonesia evaluates energy commodity deals after US Court ruling
“With the US Supreme Court’s decision, we finally have 90 days to conduct a review,” ESDM Deputy Minister Yuliot said on Friday.
Furthermore, his office did not rule out the possibility of changes or further discussions regarding the agreement within the 90-day period. He mentioned that the discussions and reviews conducted over the next 90 days are also part of the implementation process.
“Within the 90 days, we will hold discussions for implementation,” he confirmed.
Even though the US Supreme Court annulled reciprocal tariffs, he mentioned that this annulment does not apply to trade agreements between countries established in discussions after the US established reciprocal tariffs.
“The agreement for energy imports from the US in the Agreement on Reciprocal Trade (ART) is stated to be worth US$15 billion. Meanwhile, the one subject to review by the US Supreme Court is related to tariffs. So, there is a difference,” he explained.
On Thursday (February 19), the Indonesian and US governments officially signed the ART, granting zero percent import duty exemptions for 1,819 tariff lines for Indonesian products. These products include palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components.
Furthermore, the two countries also agreed to eliminate zero percent import duties on textiles and garments from Indonesia through a specific quota scheme.
However, one day after the agreement, the US Supreme Court ruled that President Donald Trump lacked the authority under the International Emergency Economic Powers Act (IEEPA) to impose global tariffs. The ruling resulted in the US implementing a temporary global tariff of 10 percent, with the White House planning to increase it to 15 percent.
The Indonesian Coordinating Ministry for Economic Affairs confirmed that there would be further discussions with the US following the Supreme Court’s decision to overturn the reciprocal tariff policy.
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Translator: Putu Indah S, Resinta Sulistiyandari