TEMPO.CO, Jakarta - Member of Commission I of the Indonesian House of Representatives (DPR), Yulius Setiarto, has called for a reevaluation of the Agreement on Reciprocal Trade (ART) between Indonesia and the United States (US).
Yulius revealed the consequences of the agreement signed by Indonesian President Prabowo Subianto and President Donald Trump on February 19, 2026. According to him, the agreement was signed without parliamentary discussion and approval, as well as without changes to its substance. He argued that ART must be reviewed because it affects national interests.
“Moreover, there are loopholes in the ART substance that could become a major challenge for Indonesia, especially in the context of digital sovereignty,” Yulius said in a written statement on May 15, 2026.
Yulius stressed that data is a strategic asset, making Article 3 of ART — particularly Article 3.2 on data transfer — necessary to review. The article concerns Digital Trade Facilities and promotes digital liberalization that enables smoother data flows in innovation and digital trade between Indonesia and the US.
“The problem is that this arrangement is unbalanced. It benefits US technology companies more, while risking harm to national interests,” said the Indonesian Democratic Party of Struggle (PDI-P) politician.
Yulius said one of the risks lies in Indonesia’s obligation to ensure cross-border data transfers through reliable electronic systems with adequate protection for business operations.
He argued that Indonesia is entering a “subtle trap” because the country still depends on foreign digital infrastructure and services. This condition leaves national data protection reliant on global technology dominated by US companies.
“This risk must be balanced with adequate verification and monitoring mechanisms so that the security and interests of citizens remain protected,” he said.
Another concern, according to Yulius, is Article 3.4 on Market Access Requirements, which prohibits Indonesia from requiring technology transfers, access to source code, or algorithms as prerequisites for US companies operating in the country.
Yulius said that although the rule may increase investor appeal and encourage digital economic growth, the government still needs credible audit and accountability mechanisms, particularly to anticipate cybersecurity risks and algorithmic bias that could harm national interests.
He also highlighted Article 3.3 on Digital Trade Agreements, which requires Indonesia to communicate with the US before signing new digital trade agreements with other countries if the agreements are considered to affect US interests.
“This rule will certainly limit Indonesia’s cooperation with other countries. It will create difficulties if Indonesia needs digital trade cooperation with parties other than the US to support national interests,” he said.
Yulius stressed that the public must remind the government that sovereignty in the digital era is determined by who controls data. He questioned Indonesia’s digital sovereignty when digital infrastructure and governance depend heavily on foreign entities such as the United States.
According to Yulius, without adequate infrastructure preparation, data transfer mechanisms merely facilitate access to citizens’ data without proper control.
“We should understand that cyberattacks are no longer just a potential threat, but a real threat that must be anticipated as a matter of sovereignty. A country’s vital infrastructure can be compromised through cyberattacks,” he said.
Yulius cited Russia’s hacking of Ukrainian power plants in 2015 as an example. He added that the escalation of tensions between the US and Iran in the Middle East could increase threats to Indonesia’s cybersecurity resilience and national security.
He also noted that the personal data protection supervisory agency mandated by Indonesia’s Personal Data Protection Law has not yet been established. In addition, digital infrastructure such as the national data center still relies on temporary facilities.
Yulius emphasized that growing cyber threats further underline the urgency of discussing the Cyber Security and Resilience Bill (CSRB) to complement existing regulations. He believes the law would strengthen Indonesia’s bargaining position by focusing on the protection of vital infrastructure and national data security while reducing dependence on foreign entities.
“The approach taken in the CSRB must prioritize resilience so that a digital ecosystem capable of quickly recovering from external attacks or interventions can be created while also protecting civil rights,” he said.
Yulius also warned that foreign control over personal data and algorithms could be used to shape public perception, influence political preferences, and disrupt national interests.
“This warning echoes concerns over the influence of ‘foreign proxies,’ as frequently mentioned by President Prabowo, which threaten national stability and sovereignty,” he said.
Therefore, before the implementation of ART, Yulius urged the government to immediately take several strategic steps. First, he called for accelerating the preparation of technical implementing regulations covering data classification and risk control, including defining which data can and cannot be transferred.
Second, he asked the government to establish cross-institutional task forces to strictly monitor the implementation of data transfers.
Third, he urged the government to optimize the implementation of the Personal Data Protection Law, including drafting technical regulations so that cross-border data transfer requirements can be verified fairly.
Fourth, Yulius stressed the need to accelerate the discussion and ratification of the Cyber Security and Resilience Bill to provide a strong legal basis for protecting vital infrastructure and civil data resilience in safeguarding Indonesia’s national digital sovereignty.
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