Indonesia-US ART Agreement in Limbo as Trade Minister Waits for Section 301 Investigation Results

The Indonesian government is currently awaiting the results of a US investigation into the continuation of the Arrangement on Reciprocal Trade (ART). This crucial trade tariff agreement, signed on 19 February 2026, now faces internal regulatory challenges in the US.

Trade Minister Budi Santoso revealed that the US is conducting an investigation under Section 301 of the 1974 Trade Act, targeting countries with significant trade surpluses with America, including Indonesia.

According to Trade Minister Budi Santoso, two sensitive issues are under scrutiny by US authorities during the investigation:

However, the minister stressed that Indonesia has proactively provided clarifications. ‘Indonesia has resolved both issues during the clarification process with US authorities,’ Budi stated in Jakarta on Monday.

The certainty of ART’s continuation after the 150-day period is critical. Data from 2025 shows the US market is a strategic partner with $30.9 billion in exports and an $18.11 billion surplus for Indonesia.

The government hopes ART will provide a better level playing field for Indonesia’s key products, such as:

Budi also highlighted regional competition, with neighbours like Thailand pursuing similar agreements. ‘We hope ART will ensure Indonesia is treated differently — better than countries without such agreements,’ he concluded.

Trade Minister Budi Santoso stated that developing Village and Urban Cooperatives (Kopdes/Kel) Merah Putih is not solely about competing with modern retail.

The 40th Trade Expo Indonesia (TEI) recorded $22.8 billion in transactions, exceeding targets. Trade Minister Budi Santoso praised Indonesia’s export achievements and pledged support for MSMEs.

Reference prices are set as a compromise between consumer and producer interests. A drop would affect producers’ profits.