Following the signing of the Indonesia-US Agreement on Reciprocal Trade (ART) on February 19, 2026, Deputy Chair of DPR Commission VII Chusnunia Chalim has called for a government review amid concerns over energy commitments worth $15 billion, local content requirements, and risks to farmers. Energy Minister Bahlil Lahadalia stated the deal shifts import sources without increasing volumes.
The Agreement on Reciprocal Trade (ART), signed by Presidents Prabowo Subianto and Donald Trump in Washington DC, includes energy trade commitments totaling an indicative $15 billion, covering $3.5 billion in LPG, $4.5 billion in crude oil, and $7 billion in refined fuels, alongside metallurgical coal and clean coal technology.
Energy Minister Bahlil Lahadalia clarified that the agreement redirects existing import volumes from other suppliers to the US without raising quotas. Indonesia's annual LPG needs are 8.3 million tons, with domestic production at 1.6 million tons, leaving 7 million tons for import at market prices. He emphasized that US LPG is competitively priced and the shift preserves national energy sovereignty without state burden.
However, Chusnunia Chalim raised alarms over more than 20 problematic clauses, including requirements for US approval on third-country deals and exemptions for US goods from local content rules (TKDN, per Minister of Industry Regulation 35/2025, mandating 25% local components for incentives). She warned this could undermine Indonesia's manufacturing independence and flood markets with US agricultural products like beef, milk, and cheese, harming local farmers by lowering non-tariff barriers.
Chusnunia also noted a US Supreme Court ruling invalidating reciprocal tariffs without congressional approval, creating an opportunity for renegotiation. 'The government and DPR have time to consider next steps guided by social interests, equality, and mutual benefit,' she said.
