U.S. Supreme Court Ruling Does Not Halt Trade Deal with Indonesia

12 hours ago 5

February 22, 2026 | 05:01 pm

TEMPO.CO, Jakarta – Indonesia’s government said its newly signed trade agreement with the United States remains valid and is moving forward, despite a U.S. Supreme Court ruling that struck down parts of President Donald Trump’s global tariff policy.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the bilateral agreement signed on February 19, 2026, continues to stand because it operates under a separate mechanism from the broader tariff policy addressed by the court.

According to Airlangga, the Supreme Court of the United States ruling concerns the cancellation of certain global tariffs and reimbursement to affected corporations.

The Indonesia–U.S. agreement, he said, is a bilateral arrangement between two sovereign states and is not automatically affected by the decision.

“For Indonesia, this is a bilateral agreement between two countries and it remains in progress. The agreement stipulates that it will take effect within 60 days of signing, during which both parties will consult with relevant institutions,” Airlangga said in Washington, D.C., in a video statement released on Sunday, February 22, Jakarta time.

Indonesia has requested that the agreed zero-percent tariff scheme for several commodities—particularly agricultural products such as coffee and cocoa—remain in place. These provisions are regulated through a U.S. executive order.

“Indonesia has signed the agreement, and what we have requested is that the zero-percent tariff remain, even if a 10 percent rate applies more broadly,” Airlangga said.

He added that the zero-percent tariff arrangement also covers segments of key industrial supply chains, including electronics, crude palm oil, textiles, and footwear.

The government is now awaiting developments over the 60-day consultation period. Airlangga said there would likely be policy differentiation between countries that have concluded bilateral agreements with Washington and those that have not.

“Countries that have signed agreements will receive different treatment under global policy adjustments,” he said.

President Prabowo Subianto and U.S. President Donald Trump signed the reciprocal trade agreement in Washington on February 19, following a 30-minute bilateral meeting after the Board of Peace event. The agreement includes a 19 percent tariff on Indonesian exports to the United States.

On the same day, however, the U.S. Supreme Court ruled that Trump’s sweeping tariff policy against multiple countries exceeded presidential authority and violated the Constitution, stating that the president does not have inherent power to impose large-scale tariffs unilaterally.

Read: Trump Raises Global Tariff to 15% After Supreme Court Ruling

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