Trade Minister's Defence After US Trade Agreement Accused of Violating Regulations
Trade Minister Budi Santoso has stood firm after the trade agreement, Agreement on Reciprocal Trade (ART), between Indonesia and the United States (US) was accused of violating the law. Budi claimed that the entire process has proceeded in accordance with procedures.
It is known that the ART agreement was accused of breaching regulations because it was not consulted with the DPR RI before signing. In response, Budi asked all parties to re-read Law No. 7 of 2014 on Trade.
“Well, I also want to clarify this. Sometimes in the media, they say that the ART agreement violates the law because it was not consulted with the DPR,” Budi said at his office in Central Jakarta, Friday (27/3/2026), quoted from detikFinance.
Budi explained that consultation with the DPR takes place after the trade agreement is signed. According to him, the government has up to 90 days after signing to conduct consultation with parliament.
“Please check Articles 82-87. The consultation or ratification with the DPR is done after the trade agreement is signed, after that. After the trade agreement is signed and at the latest 90 days, consultation must be conducted,” Budi added.
Budi also responded to the debate regarding the ratification legal product, whether in the form of a presidential regulation (Perpres) or an act of parliament (UU). He emphasised that the ratification process is still ongoing. Budi said the final legal framework depends on the consultation with the DPR later.
“Well, some say it should be an act of parliament, why now Perpres? Indeed, the legal product? Not yet. The ratification will produce the legal product later. Whether Perpres or an act of parliament, it depends on the results of our consultation with the DPR,” he added.
Budi stated that the ART agreement serves as a protective shield for Indonesia in the event of a trade dispute with Uncle Sam’s country. Through ART, he said, both countries have a forum in the form of the Council on Trade and Investment to address trade issues.