Press Council Raises Concerns Over Indonesia-US Reciprocal Trade Agreement

Indonesia and the United States signed the Agreement on Reciprocal Trade (ART) in Washington DC on 19 February 2026. The agreement covers various aspects, ranging from trade tariffs to the regulation of digital platform and media relationships. The Press Council has identified at least two clauses with direct implications for Indonesian media, concerning foreign investment provisions and the government’s relationship with US-based digital companies.

First, regarding foreign investment: Article 2.28 of the bilateral agreement requires Indonesia to permit unrestricted foreign ownership for US investors in several sectors, including publishing. According to Dewan Pers chairman Komaruddin Hidayat, this provision would open media sector foreign capital to 100% ownership specifically for US investors, contradicting existing Indonesian regulations. Article 17 of Law No. 32 of 2002 on Broadcasting limits foreign capital in broadcasting institutions to a maximum of 20%. Law No. 40 of 1999 on Press allows foreign capital in media through capital markets, but ownership may not be majority-held.

Second, concerning the relationship between US digital platforms and media: Article 3.3 of the agreement requires the Indonesian government to “refrain” from mandating US digital service providers to support domestic news organisations through paid licensing, user data sharing, and profit-sharing models. The Press Council contends this contradicts Presidential Regulation No. 32 of 2024 on Digital Platform Companies’ Responsibility to Support Quality Journalism, which requires digital platforms to support quality journalism through cooperation with news companies.

Forms of cooperation outlined in Article 7 of the regulation include paid licensing, revenue sharing, and sharing of aggregated news user data. The bilateral agreement’s provisions would effectively weaken the Presidential Regulation, rendering it toothless. Whilst cooperation between digital platforms and media may still be possible, it would be limited to business-to-business arrangements rather than mandatory requirements.

The Press Council has called on the Indonesian government to withdraw the clause permitting 100% foreign ownership in the publishing sector, as it conflicts with Law No. 32 of 2002 on Broadcasting and Law No. 40 of 1999 on Press. It also recommends withdrawing Article 3.3 of the bilateral agreement due to its conflict with Presidential Regulation No. 32 of 2024.

The Press Council emphasises that press freedom constitutes the fourth pillar of democracy, and the state has an obligation to strengthen the press through policies enabling healthy business growth, quality journalism, and protection from all forms of violence, so that it may fulfil its mandate under the Press Law.