Video: Indonesia's Solar Panels Hit by Trump's 104% Tariff, National Economic Council Speaks Out

Jakarta, CNBC Indonesia—The Indonesian and United States governments have officially signed a reciprocal trade agreement contained within the Agreement on Reciprocal Trade (ART) titled “Toward a New Golden Age for the US-Indonesia Alliance”.

Deputy Chairman of the National Economic Council (Dewan Ekonomi Nasional, DEN), Mari Elka Pangestu, stated that the signing of the Indonesia-US trade agreement on 19 February 2026 formed part of the government’s efforts to protect labour-intensive industries, as Indonesian goods could face 32% tariffs without negotiation.

This is particularly significant given that labour-intensive industries—including textiles, apparel, furniture, and seafood—are heavily dependent on the United States market. Without negotiation, the impact on these industries would be substantial, including effects on employment.

Regarding the 104% tariff imposed on Indonesian solar panel products entering the US market, Mari assessed that this resulted from a surge in demand for Indonesian solar panels caused by supply diversion from China and Vietnam, requiring a prudent response from the Indonesian government.

The urgency and impact of the Indonesia-US trade agreement were discussed in detail between Syarifah Rahma and Mari Elka Pangestu, Deputy Chairman of the National Economic Council, on Squawk Box CNBC Indonesia (Friday, 27 February 2026).