UGM Academics Urge Reassessment of Indonesia's Involvement in the BoP and the Agreement on Reciprocal Trade with the United States

Sleman — Academics from Universitas Gadjah Mada (UGM) have voiced a critical stance on Indonesia’s foreign policy direction, particularly regarding participation in the Board of Peace (BoP) and the signing of the Agreement on Reciprocal Trade (ART) with the United States. The statement was read by the Chair of UGM’s Council of Professors, Prof. M. Baiquni, at UGM campus on Monday, 2 March 2026.

In their statement, the academics argued that both policies could erode the sovereignty of the nation and deviate from the principle of an independent and active foreign policy. “Reject Indonesia’s foreign policy that sides with aggressors as reflected in Indonesia’s involvement in the Board of Peace and the signing of the Agreement on Reciprocal Trade, which has evidently harmed the sovereignty of the Republic of Indonesia. We urge all policy formulators to re-examine the contents of the ART,” Baiquni said as he read the academic and university community’s statement on Monday, 2 March 2026.

The policy is described as harmful to Indonesia’s sovereignty. UGM notes that the problem with ART lies not only in procedural aspects but also in the substance, which is considered skewed. In their study, the university states that the greatest benefits lean towards the United States, while Indonesia potentially bears broad obligations at both government and societal levels.

“This must be prevented, and it is dismaying that the ART signing, in our analysis, harms the sovereignty of the Republic of Indonesia,” he added.

Additionally, UGM highlights the orientation of Indonesia’s foreign policy as being inclined to side with aggressors. This is reflected in Indonesia’s involvement in BoP, which culminates in conflict. Academics believe the situation reinforces the urgency of re-evaluating ART before its impact on Indonesia’s position on the global stage. Implementing ART would require substantial resources, including financing, time, and manpower.

Regulatory adjustments are deemed inevitable, ranging from revised laws, Keppres, PP, Perpres, and Permen, to the drafting of new rules. The potential economic impact is also considered to be felt in both the short and long term. “Various clauses contained in the ART agreement threaten Indonesia’s sovereignty as a country that has, since independence, pursued a policy of free and active foreign policy,” the statement read.

Academics also argue ART imposes obligations to comply with future policies, even if such policies have not yet been formulated. They highlight the possibility of unilateral policies by the United States, including potential enforcement against Indonesia in its relations with third countries.

On the fifth point, Baiquni stresses the need for a comprehensive, evidence-based policy analysis of each ART clause, particularly regarding its impact on the national economy and sovereignty. Given its cross-sectoral scope, a multidisciplinary approach is deemed essential.

The UGM Council of Professors also believes the government should adopt a prudent stance, prioritising the welfare of the people and the nation’s sovereignty in both the short and long term. The ART’s complexity, including the United States Supreme Court decision, is considered a matter for consideration before a final decision is taken. If the ratification process is not aligned with the purposes of the law or the 1945 Constitution, options such as renegotiation, delay, or cancellation should be considered.

“We call on academics from universities across Indonesia to jointly conduct multidisciplinary studies on ART’s impact on Indonesia’s economy and sovereignty. As a form of public accountability and dissemination of scholarly knowledge, the results of these studies should be widely disseminated so that the public can reflect, be discerning, and become sovereign citizens,” Baiquni said as he read the seventh point of the statement.

“UGM academics stand ready to support every effort to strengthen and uphold Indonesia’s sovereignty in various fields and areas of life,” Baiquni concluded.