The US-Indonesia Agreement on Reciprocal Trade: Three Views on its Economic and Strategic Impacts

The US–Indonesia Agreement on Reciprocal Trade (ART), signed in February 2026, provides Indonesia with improved access to the US market but requires broad commitments extending beyond tariffs into digital trade, investment, regulation and strategic alignment. While the agreement may help protect labour-intensive exports and provide short-term stability, its asymmetry could constrain Indonesia’s future policy space. Indonesia is advised to pursue cautious, conditional ratification supported by safeguards, legal review and potential renegotiation of problematic provisions. Meanwhile, Indonesia should pursue regulatory and competitiveness reforms based on national interests while maintaining its ASEAN and RCEP commitments.

Learn More About It Here