DEN Highlights Strategic Value of Indonesia-U.S. Trade Agreement

RRI.CO.ID, Jakarta - Indonesia’s trade pact with the United States seen as a safeguard amid global uncertainty. The National Economic Council (DEN) has stated that the agreement will help protect national interests and strengthen the country’s industrial competitiveness at a time of rising volatility in international trade.

DEN Chairman Luhut Binsar Pandjaitan described the deal as a strategic step to ensure Indonesia’s position remains strong and credible. “This agreement secures Indonesia’s standing in the midst of global trade uncertainty. It is a strategic move to protect national interests while enhancing our economic competitiveness,” he said in Jakarta on Monday, February 23, 2026, as quoted by Antara.

The development follows a ruling by the U.S. Supreme Court, which struck down President Donald Trump’s reciprocal tariff policy, declaring its legal basis under the International Emergency Economic Powers Act (IEEPA) invalid.

IEEPA, signed into law by President Jimmy Carter in 1977, allows the U.S. president to regulate international trade after declaring a national emergency in response to extraordinary foreign threats.

In response to the court’s decision, President Trump imposed new tariffs of 15 percent for 150 days and launched a fresh trade investigation under Section 301 of the U.S. Trade Act of 1974. Luhut warned that tariffs resulting from Section 301 investigations could be even higher than those under the reciprocal tariff scheme, as the regulation sets no maximum limit and can remain in effect for years.

However, with the trade agreement already signed, Luhut argued that Indonesia enjoys a strategic advantage and greater protection against future U.S. regulatory shifts compared to countries without such a pact.

“With concrete commitments already in place, Indonesia’s position will be far stronger when Section 301 investigations proceed than that of nations lacking any agreement,” he said.

DEN expressed optimism that the current uncertainty could also create opportunities, making Indonesia’s industrial and investment sectors more attractive to multinational companies seeking reliable access to the U.S. export market.

The United States remains one of Indonesia’s key trading partners and a major destination for labor-intensive industries, particularly garments and footwear.

“The National Economic Council will continue to closely monitor developments on this issue and provide recommendations to the President to ensure Indonesia’s economy keeps growing and national interests remain protected,” Luhut added. ***