US Supreme Court ruling does not impact trade deal with Indonesia

Indonesia’s government assured that the trade agreement recently signed with the United States is still valid and progressing, despite a U.S. Supreme Court ruling that invalidated parts of President Donald Trump’s global tariff policy. Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted that the bilateral agreement signed on February 19, 2026, stands independent of the broader tariff policy addressed by the court, emphasizing that it remains unaffected by the Supreme Court ruling pertaining to global tariffs. He maintained that the Indonesia-U.S. agreement is a distinct arrangement between two sovereign states and should not be automatically impacted by the court’s decision.

Airlangga emphasized that while the Supreme Court ruling involves the annulment of specific global tariffs and compensation for affected companies, the bilateral trade deal with the U.S. remains intact. He clarified that the Indonesia-U.S. agreement is set to enter into force within 60 days of signing, during which both parties will engage in consultations with relevant institutions to ensure its implementation. Airlangga’s statement, released through a video from Washington, D.C., underscored that Indonesia has sought to uphold the zero-percent tariff scheme for key commodities like coffee and cocoa as outlined in the U.S. executive order. Despite the broader tariff adjustments, he stated that Indonesia is advocating for these provisions to be maintained and respected under the bilateral trade pact.

Furthermore, Airlangga highlighted that the zero-percent tariff arrangement also extends to vital segments of industrial supply chains, including electronics, crude palm oil, textiles, and footwear. The government is eagerly awaiting updates during the consultation period, anticipating potential policy variances for countries with bilateral agreements compared to those without such arrangements. The minister conveyed that nations with established agreements can expect differential treatment amidst global policy adaptations.

The reciprocal trade agreement between President Prabowo Subianto and U.S. President Donald Trump, finalized on February 19, includes a 19 percent tariff on Indonesian exports to the United States. This agreement came on the same day as the U.S. Supreme Court’s ruling, which found Trump’s extensive tariff policy overreach presidential authority and breach the Constitution, declaring that imposing large-scale tariffs unilaterally is not within the president’s inherent power.

In conclusion, Indonesia remains steadfast in its commitment to the trade deal with the United States and is optimistic about its implementation and future prospects under the agreed terms. The government’s proactive engagement and strategic approach in safeguarding key sectors and commodities through bilateral arrangements showcase its dedication to fostering sustainable and productive economic relationships with global partners.