US Import Tariffs Won’t Affect Domestic Products: Govt

RRI.CO.ID, Jakarta – The Indonesian government has emphasized that the Agreement on Reciprocal Trade (ART) with the United States does not threaten domestic products.

According to Fithra Faisal Hastiadi, an expert with the Government Communication Agency (Bakom RI), imported US goods are not direct competitors to national production.

Fithra explained that most goods purchased from the US are industrial necessities or complementary commodities, which do not directly conflict with domestic production. “In general, what is purchased from the US are products that do not directly interfere with domestic products. That is generally the case, although there are some exceptions,” he said in Jakarta on Wednesday, February 25, 2026.

Several commodities on the import list, including cotton, corn, and rice, require importation. Fithra noted that the Ministry of Agriculture is notified of these imports. He stressed that the trade agreement remains flexible and can be further evaluated, with Indonesia retaining the ability to protect national economic interests.

“If this is considered disruptive to local economic interests, then we can renegotiate. There is always an escape clause as long as it does not violate the national interest,” he explained.

Fithra also said concerns about US rice imports were excessive, noting that US rice production is limited and does not significantly affect Indonesia’s domestic market. “For example, rice is minimal because they are not rice producers, and there is not much of it. So, it does not generally interfere with national capacity,” he added.

The government has assured that trade agreements are implemented with national needs as a priority. Fithra underlined that the competitiveness and sustainability of local products remain a key concern.

Separately, Trade Minister Budi Santoso confirmed that US import tariffs do not affect Indonesia’s export performance. He said the country’s trade balance remains strong, with a surplus recorded in trade with the US through early 2026.

“Right now, we have a surplus, the largest being with the US and India, so there is no problem. Many Indonesian export products receive a zero percent tariff facility under the terms of the trade agreement between both countries,” Minister Budi said in Jakarta on Tuesday, February 24, 2026.

Minister Budi emphasized that reciprocal trade relations provide balanced benefits for both parties. He added that the government will continue to increase shipment volumes to strengthen foreign exchange reserves through trade. (Gusti Panji/Lasti Martina)