February 20, 2026 | 10:44 pm
TEMPO.CO, Jakarta - Within the 45 pages of the Agreement of Reciprocal Trade (ART), it contains, among other things, Indonesia's obligations to the United States (US). The deal was signed by both countries on Friday, February 20, 2026, Jakarta time.
In this agreement, the United States demands Indonesia fulfill at least 217 obligations, while the US has about six obligations to Indonesia. The total obligations between the two countries cover three points.
One of the United States' demands on Indonesia is to restrict exports and investments from other countries that enter the US government's boycott list, as outlined under Article 5.2. of the ART document.
In the same provision, the United States obliges Indonesia to establish and implement mechanisms to review foreign investments in the context of national security risks, and to cooperate with the United States in matters related to investment security.
If the United States deems Indonesia cooperative in handling national and economic security risks, Washington can take it into account in shaping laws and regulations related to export controls, investment review, and other measures.
In the same article, Indonesia is required to cooperate with the United States through domestic regulations to control the trade of "national security-sensitive technologies and goods" through the existing "multilateral export control regimes, align with U.S. export controls," and ensure Indonesian companies do not violate or weaken such controls.
These obligations have drawn scrutiny from the Center of Economic Law and Studies (Celios), as they risk transforming Indonesia's free and active foreign policy stance. Moreover, this will complicate Indonesia's relations with countries in the south and BRICS considered to be US enemies.
These agreement points will take effect after 90 days, or around May 20, 2026, and there are still 60 days for negotiations after notification from both sides.
Celios warns that if this trade agreement is ratified and becomes a technical regulation, it will result in WTO lawsuits and retaliation. "These consequences seemingly have no mitigation measures yet," quoting Celios' written analysis. Celios believes Indonesia could be deemed discriminatory towards other partners, such as China, if it gives preferential measures only to the US.
Read: List of Indonesia, US Obligations Under New Reciprocal Trade Deal
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