Various Losses and Threats in Trade Agreement with United States
A gathering of senior professors, academics, and members of the academic community at Gadjah Mada University (UGM) has declared that bilateral cooperation between the United States and Indonesia under the Agreement on Reciprocal Trade (ART) is disadvantageous and threatens national sovereignty. This statement was delivered during a public hearing on the ART agreement held at UGM’s Balairung, Yogyakarta, on Monday, 2 March 2026.
The Chairman of UGM’s Board of Professors, M. Baiquni, stated that the trade agreement violates Article 11 of the 1945 Constitution and Constitutional Court Decision No. 13/PUU-XVI/2018, as the ratification process was not based on consultations that included the People’s Representative Council.
According to UGM, Baiquni explained, the content of the ART agreement is asymmetrical, with the greatest benefits accruing to the United States, whilst Indonesia would bear the majority of costs due to numerous obligations burdening the Indonesian government and people.
Consequently, UGM has requested that all policymakers carefully reconsider the agreement’s provisions. “Specifically, we also request the Ministry of Foreign Affairs to help the government make corrections and not place the President in a position of violating the Constitution and laws,” Baiquni stated when delivering the statement.
Furthermore, UGM noted that this trade agreement also has the consequence of obligating the government to amend dozens of laws, government regulations, presidential decisions, ministerial regulations, and various other rules. UGM stated that considerable resources would be required to draft these new regulations. “Other consequences of the ART create economic burdens both in the short and long term,” Baiquni added.
In their statement, UGM academics also expressed concern that various clauses contained in the ART agreement pose risks to Indonesian sovereignty as a nation that has pursued an independent and active foreign policy since independence. The content of the ART agreement is considered to contain obligations for compliance with future United States policies.
On this basis, UGM has requested that the government renegotiate, postpone, or cancel implementation of the trade agreement. “UGM academics stand ready to support all efforts to strengthen and reinforce Indonesian sovereignty across various fields and areas of national life,” Baiquni stated.
UGM, Baiquni added, also invites academics from various universities to jointly conduct multidisciplinary studies regarding the impact of the ART on Indonesia’s economy and sovereignty.
Wening Udasmoro, Vice Rector for Education and Teaching, emphasised that this critical statement from UGM’s academic community is a purely academic position and not motivated by any particular interests. He stated that this academic statement would be followed up with scientific forums for later submission to the government.