February 23, 2026 | 10:45 am
TEMPO.CO, Jakarta - Indonesia's Coordinating Ministry for the Economy stated that the domestic component level (TKDN) policy does not bind all goods from the United States. The spokesperson for the Coordinating Ministry for the Economy, Haryo Limanseto, said, "This means that the TKDN provisions related to projects or government spending, not all goods circulating in the market," in a written statement on Sunday, February 22, 2026.
Haryo made the statement in response to one of the agreements in the Agreement on Reciprocal Trade (ART) document, which requires Indonesia to exempt U.S. goods from local content requirements. This obligation is stipulated in Article 2.2: Local Content and Domestic Specification Requirements.
It means that the TKDN for U.S. goods is only required for government spending, not for all products traded commercially in the domestic market or directly to consumers. Haryo said that the TKDN requirements for U.S. products aim to promote the use of Indonesian products.
According to Haryo, this provision does not change the mechanism of competition for goods in the retail market or industry at large. Additionally, he believes that this rule does not unfairly disadvantage domestic businesses.
The Center on Reform on Economics (CORE) Indonesia views the reciprocal tariff agreement between the U.S. and Indonesia as a new pattern of economic exploitation of developing countries.
The White House itself referred to the agreement as a "Great Deal" that will bring a new golden era for Indonesia-U.S. relations.
According to CORE, the details of the 45-page agreement show the U.S.'s ambition to exploit the Indonesian market. "We also believe that the negotiating team failed to voice the interests of the domestic industry and consumers," CORE stated in a press release on Friday, February 20, 2026.
CORE perceives an extraordinary imbalance between Indonesia's obligations and those of the U.S. CORE highlights the increase in Indonesia's commercial commitments, which previously amounted to US$22.7 billion but now have risen to US$33 billion in the final document.
"The fact is, when looking at the latest document that was final and agreed upon on February 20, 2026, Indonesia is not only battered, but also loses its dignity and independence to manage the economy based on national interests," CORE added.
CORE states that the U.S. seems to lock in all aspects of policy based on its interests, from investment, agriculture, and critical minerals to digital trade, trade in goods and services, and service assurance industries.
Anastasya Lavenia Yudi contributed to this article
Read: Airlangga: Indonesia-US Trade Deal Unaffected by US Court Ruling
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