U.S. Supreme Court ruling has no impact on trade deal with Indonesia

Indonesia’s government has confirmed that the recent U.S. Supreme Court ruling that struck down parts of President Donald Trump’s global tariff policy does not affect the trade deal with Indonesia. Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the bilateral trade agreement signed on February 19, 2026, between Indonesia and the United States remains intact as it operates under a separate mechanism from the broader tariff policy addressed by the court.

Airlangga emphasized that while the U.S. Supreme Court’s ruling pertained to the cancellation of specific global tariffs and reimbursement to affected corporations, the Indonesia-U.S. agreement stands as a bilateral arrangement between two sovereign states and is unaffected by the decision. The agreement stipulates that it will take effect within 60 days of signing, during which both parties will engage in consultations with relevant institutions.

Indonesia has specifically requested that the zero-percent tariff scheme for commodities like coffee and cocoa remains in place, even as a broader 10 percent rate applies. This request aligns with provisions regulated through a U.S. executive order that covers key industrial supply chain segments such as electronics, crude palm oil, textiles, and footwear.

Airlangga mentioned that the government is awaiting developments during the 60-day consultation period. He also highlighted that there would likely be policy differentiations between countries that have a bilateral agreement with Washington and those that do not, indicating that signatory countries will experience distinct treatment under global policy adjustments.

The reciprocal trade agreement was signed by President Prabowo Subianto and U.S. President Donald Trump in Washington on February 19, following a bilateral meeting after the Board of Peace event. The agreement involves a 19 percent tariff on Indonesian exports to the United States. However, the U.S. Supreme Court’s ruling on the same day deemed Trump’s broad tariff policy against multiple countries unconstitutional, stating that the president lacks the inherent power to unilaterally impose large-scale tariffs.

In response to the ruling, Indonesia’s trade agreement with the U.S. remains unaffected, and the two parties continue to move forward with its implementation. The government’s firm stance on the bilateral trade deal with the United States reflects its commitment to fostering economic growth and stability through international cooperation.