exellent crabdouble-skinned crabsVietnamese crab exporter

‘Lawmakers’ Review First’: Indonesia on What Comes Next After US Deal Signing

Jayanty Nada Shofa
February 3, 2026 | 2:09 pm
SHARE
President Prabowo Subianto shakes hands at the Board of Peace launch led by his American counterpart Donald Trump in Davos on Jan. 22, 2025. (Photo Courtesy of Presidential Press Bureau)
President Prabowo Subianto shakes hands at the Board of Peace launch led by his American counterpart Donald Trump in Davos on Jan. 22, 2025. (Photo Courtesy of Presidential Press Bureau)

Jakarta. A senior Indonesian minister said Tuesday that the US tariff deal Jakarta would sign soon still needed to go through lawmakers, similar to other trade pacts.

Chief Economic Affairs Minister Airlangga Hartarto restated that both Indonesian and American sides were putting the final touches to the document. The Jakarta Globe asked Airlangga about what comes next after the signing, particularly on whether the terms can automatically kick in or still have to go through the ratification process. Airlangga signaled that it would be the latter. 

“The [US government] will issue an executive order to be reported to Congress. Indonesia, too, has to inform the House of Representatives,” Airlangga told a presser on the sidelines of the 2026 Indonesia Economic Summit.

For context, ratification is the process that will see the government seeking lawmakers’ consent to make the agreed-upon terms official. The House has some trade pacts pending for ratification, including with Peru. Airlangga did not go into more details, but claimed the so-called “legal drafting had reached 90% completion”. This is a separate process where both sides have lawyers making sure the text is legally sound. He did not disclose the final tariff rates and only repeated his statement that the signing would hinge on President Prabowo Subianto and his American counterpart Donald Trump’s availability.

ADVERTISEMENT

“We are waiting for the leaders’ schedule,” Airlangga said, when asked if a Prabowo-Trump meeting could take place this month.

Malaysia's agreement with Washington showed that the terms would "enter into force" 60 days after both parties exchanged written notifications certifying completion of their "applicable legal procedures". The close neighbor signed the document in late October 2025.

Jakarta's tariff negotiations have been embroiled in rumors in recent months, including the presence of a poison pill clause aimed at excluding China from the region. Media reports claimed that the Trump government demanded Jakarta buy US-made drones for surveillance in the waters near the highly contested South China Sea. Jakarta’s membership in the Board of Peace for Gaza also sparked questions on whether this was part of the tariff negotiations. Airlangga has denied all claims.

Jakarta has been seeking to placate Trump’s wrath over trade imbalances. The talks, which already hit its 9-month mark, saw Indonesia making major concessions, including a $15 billion energy import pledge and removal of tariff barriers. Washington agreed to rescind the import tax on Indonesian goods from a punitive 32% to 19%. Airlangga claimed that the Trump government had agreed to free Indonesian palm oil from tariffs. The minister’s aide Susiwijono Moegiarso recently told the press that the pact would have a “nice surprise”, while signaling it would provide a boon for Indonesia’s key export sectors.

Trump’s capricious tariff policies did not stop the trade gap from widening. The Central Statistics Agency (BPS) revealed that Indonesia’s surplus with the US rose from $14.52 billion in 2024 to $18.11 billion the following year.

Tags: Keywords:
SHARE

Related Articles


Special Updates Jul 31, 2026 | 4:31 pm

How Indonesian Traditions Can Drive Local Economy

The Indonesian government sees opportunities in driving the local economy by preserving local traditions.
Business Jul 29, 2026 | 3:44 pm

ASEAN Hopes for Predictability on Trump’s Tariffs

ASEAN says the region's businesspeople wish for a predictability and certainty as Trump launches a fresh round of tariff hikes.
Business Jul 27, 2026 | 7:50 pm

Indonesia in Talks with US for 0% Tariff on Palm Oil

Indonesia is in talks with the US to have its palm oil exempted from the latest tariff measure.
Business Jul 27, 2026 | 6:16 pm

Government Says Perry Warjiyo's Resignation Won't Disrupt Monetary Policy

The government says Bank Indonesia's policies and coordination will continue unchanged despite Perry Warjiyo's resignation.
Business Jul 27, 2026 | 1:15 pm

Indonesia Banks On EU as Trump's 10% Tariff Kicks In

Indonesia wants to fast-track its European Union (EU) trade deal as Jakarta tries to find alternatives to the tariff-agressive US.
Business Jul 24, 2026 | 4:11 pm

Indonesia Hopes US Tariff-Free Promises Stay as New Levy Hits

The US has opened up the possibility of tariff reductions for a certain volume of Indonesian textiles in the latest trade measure.
Business Jul 23, 2026 | 10:01 pm

Gov't  to Launch International Financial Center in Jakarta Before Expanding to Bali

Indonesia will launch its international financial center in Jakarta before expanding the project to Bali within two to three years.
Business Jul 23, 2026 | 9:30 pm

Indonesia to Exempt China, Australia, Canada from Export FX Retention Rule

Previously, only the United States was exempt from the policy.
Business Jul 13, 2026 | 8:43 pm

Indonesia Welcomes S&P's Investment-Grade Rating Affirmation

S&P maintained Indonesia's long-term sovereign credit rating at BBB and its short-term rating at A-2, both with a stable outlook.
Business Jul 10, 2026 | 2:19 pm

Government Stays Firm in Making Bali New International Financial Center

Indonesia will establish a financial center in Bali with tax breaks and a special legal framework to attract foreign capital.

The Latest


News 7 hours ago

Prabowo Says South Korea's Lee Asked Indonesia to Help Open Dialogue With North Korea

President Prabowo Subianto says South Korea's Lee Jae Myung asked Indonesia to help open dialogue with North Korea.
News 13 hours ago

Pullman Hotel Fire in Jakarta Suspected to Stem From Electrical Fault

Police will deploy a forensic team to investigate a fire at Pullman Hotel in West Jakarta, with an electrical fault suspected as the cause.
Business 14 hours ago

Pertamina Slashes Prices of Three Fuels From Aug. 1

Pertamina cut prices for three non-subsidized fuels from Aug. 1.
News 15 hours ago

Trump Too Stubborn to Rejoin Paris Agreement: Indonesian Minister

Indonesia's Environment Minister Jumhur Hidayat says other countries should deal with Trump quitting the Paris Accord.
Business 17 hours ago

Indofood Sales Rise 9% as Rupiah Weakness Hits First-Half Profit

Indofood’s first-half sales rose 9%, but net profit fell 19% as rupiah weakness increased unrealized foreign-exchange losses.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED