Agreement on Reciprocal Tariffs Potentially Boost US Investment: Govt

RRI.CO.ID, Jakarta - The Indonesian Government Communication Agency (Bakom RI) has announced the potential for United States investment in Indonesia following the Agreement on Reciprocal Tariffs (ART). Bakom RI expert Fithra Faisal Hastiadi estimated that the investment value could reach USD 60 billion.

Fithra explained that the opportunity stems from industrial relocation triggered by high US tariffs. He said companies from the United States and Japan are likely to move their production bases to Indonesia.

“Based on my calculations, the potential investment from this relocation could reach USD 30 billion. Combined with USD 38 billion from the initial investment commitment, the total could reach USD 60 billion,” Fithra said in Jakarta on Wednesday, February 25, 2026.

He noted that the realization of this investment depends on Indonesia’s readiness to seize the opportunity. Structural reforms are needed to strengthen national competitiveness. “The President has repeatedly mentioned the Rule of Law, Control of Corruption, and Regulatory Quality, which are indicators of the World Governance Indicator,” Fithra added.

In addition to relocation, there are direct investment commitments from the United States in several strategic sectors. Fithra said this is an important indicator of bilateral trade cooperation's success. “The day before, the President signed an investment commitment at the US-ASEAN Business Council worth USD 38.4 billion. That is also part of the ecosystem,” he said.

Meanwhile, Trade Minister Budi Santoso assured that the US import tariff policy would not affect Indonesia’s export performance. He said the country’s trade balance remains strong.

Indonesia’s trade position with the United States has recorded a surplus through early this year, and Minister Budi expressed optimism that exports of leading national products will grow further than in the previous period.

“Right now, we have a surplus, the largest being with the US and India, so there is no problem. Many Indonesian export products receive zero percent tariff facilities as agreed in the bilateral trade agreement,” Budi said in Jakarta on Tuesday, February 24, 2026.

He emphasized that this reciprocal trade relationship will provide balanced benefits for both countries. The government, he added, will continue to increase the volume of goods shipments to strengthen foreign exchange reserves through trade. (Gusti Panji/Lasti Martina)