Indonesian Political, Business & Finance News

Indonesia-US Trade Agreement Still on Track Following US Supreme Court Ruling

| Source: TEMPO_ID | Trade

The government has stated that the trade agreement between Indonesia and the United States, signed on Thursday 19 February 2026, remains on track. According to Coordinating Minister for Economic Affairs Airlangga Hartarto, despite the US Supreme Court ruling on the global tariff policy, the Indonesia-US trade agreement continues to apply as agreed.

Airlangga explained that the Supreme Court ruling pertained to the cancellation of global tariffs and the reimbursement of tariffs to certain corporations. Meanwhile, the agreement between Indonesia and the United States is a bilateral pact that continues under its own mechanisms.

“For Indonesia, which has already signed the agreement — this is a pact between two nations — it is still being processed because the agreement stipulates a 60-day period following signature, during which each party consults with the relevant institutions,” Airlangga said in Washington D.C., as quoted from a video statement on the Presidential Secretariat’s YouTube channel on Sunday 22 February 2026, Jakarta time.

Regarding the bilateral agreement, Indonesia has requested that the zero-tariff scheme already agreed upon for a number of commodities be maintained, particularly agricultural products such as coffee and cocoa, which already have separate arrangements through an executive order. “Yesterday Indonesia signed the agreement, and what Indonesia requested was that while everything else would be subject to 10 per cent tariffs, those products already granted zero per cent tariffs should remain unchanged,” Airlangga said.

Beyond the agricultural sector, Airlangga noted that the zero-tariff scheme also covers several industrial supply chains, including electronic products, crude palm oil (CPO), textiles, and footwear products.

The government is now awaiting developments over the coming two months or 60 days. According to Airlangga, there will be policy differentiation between countries that have signed bilateral agreements and those that have not. “Countries that have already signed will be given policies that differ from the global approach,” Airlangga said.

President Prabowo Subianto and US President Donald Trump signed the reciprocal trade agreement in Washington D.C. on Thursday 19 February 2026, local time. The signing formalised a 19 per cent tariff on Indonesian products entering the US. The bilateral meeting between the two heads of state lasted approximately 30 minutes following the Board of Peace event.

However, at the same time, the US Supreme Court ruled that the trade tariff policy imposed by Trump on numerous countries was unconstitutional. The Court determined that the President does not possess the inherent authority to impose sweeping tariffs on any country. Several hours after the ruling was issued, President Donald Trump announced a flat 10 per cent tariff for all countries.

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