Indonesia-US Trade Agreement Scrutinised by Press Council Over 100 Per Cent Foreign Media Ownership
Indonesia’s Press Council has highlighted potential impacts on the domestic media industry following the signing of the Agreement on Reciprocal Trade (ART) between Indonesia and the United States in Washington DC on 19 February 2026. The bilateral trade agreement is deemed to contain several provisions that could potentially conflict with existing press regulations in Indonesia.
Press Council Chair Komaruddin Hidayat stated that there are two provisions in the agreement that could directly impact Indonesian press operations, namely provisions concerning foreign investment in the publishing sector and the relationship between US digital platforms and Indonesian media companies.
“The Press Council has identified at least two articles in this agreement that could directly impact Indonesian press operations, specifically regarding foreign investment provisions and the relationship between digital platforms and domestic media,” Komaruddin said in a written statement from the Press Council on Wednesday (11 March).
One particular concern for the Press Council is Article 2.28, which requires Indonesia to allow unrestricted foreign investment for US investors across several sectors, including the publishing sector.
According to Komaruddin, this provision could potentially open up to 100 per cent foreign ownership in the media sector, particularly for US investors. He believes this conflicts with several existing Indonesian regulations.
“If this provision is implemented, foreign capital in the media sector will be opened up to 100 per cent, particularly for US investors. This is not consistent with several regulations in Indonesia,” he said.
He explained that Law Number 32 of 2002 on Broadcasting limits foreign capital ownership in broadcasting institutions to a maximum of 20 per cent. Meanwhile, Law Number 40 of 1999 on Press does allow for foreign capital through the capital market, but ownership cannot be majority-held.
Beyond the investment issue, the Press Council also raised concerns about Article 3.3 in the agreement, which governs the relationship between the Indonesian government and US-based digital service providers.
The article states that the Indonesian government should “refrain” from requiring US digital platforms to support domestic news organisations through paid licensing schemes, data sharing, or profit-sharing models.
Komaruddin believes this provision could potentially conflict with Presidential Regulation Number 32 of 2024 on the Responsibility of Digital Platform Companies to Support Quality Journalism.
“This provision in the bilateral agreement could render Presidential Regulation Number 32 of 2024 ineffective, or even non-functional,” Komaruddin said.
In that Presidential Regulation, particularly Article 5, digital platforms are required to support quality journalism through cooperation with press companies. The forms of cooperation outlined in Article 7 include paid licensing, profit-sharing schemes, and the sharing of aggregated user data for news.
According to Komaruddin, if the ART provision is enforced, cooperation between digital platforms and media companies may still occur, but would be purely business-to-business (B2B) in nature and would no longer be a government-mandated obligation.
“Cooperation between digital platforms and mass media may still be possible, but it would become purely business-oriented and would no longer be mandatory as outlined in the Presidential Regulation,” he said.
On this basis, the Press Council submitted two recommendations to the government. First, the government is asked to revoke the clause that allows foreign share ownership of up to 100 per cent in the publishing sector, as it is deemed inconsistent with the Broadcasting Law and Press Law.
Second, the Press Council also asked the government to revoke Article 3.3 in the bilateral agreement as it is deemed inconsistent with Presidential Regulation Number 32 of 2024.
Komaruddin stressed that the press plays an important role in the democratic system, so the state has a responsibility to strengthen the sustainability of the national press industry.
“The press is the fourth pillar of democracy. The state has an obligation to strengthen the press through policies that allow it to grow as a healthy business, produce quality journalism, and be protected from various forms of violence,” said Komaruddin.