The Supreme Court's Decision to Cancel Trump's Tariffs is Considered to Have a Positive Impact on Indonesia

JAKARTA - The Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira Adhinegara assessed the decision of the United States Supreme Court (US) to cancel US President Donald Trump's reciprocal tariff policy as positive news for Indonesia.

Bhima said that with this ruling, Indonesia does not need to ratify the ART (Agreement on Reciprocal Trade) agreement with Trump.

"The threat of reciprocal tariffs no longer applies, even Indonesian companies can charge the difference in import duties to the US. Everything that the Indonesian negotiation team in Washington DC did can be considered null and void. Likewise, Indonesia's pressure to join the Board of Peace because Trump used reciprocal tariffs should be dropped," said Bhima, quoting Antara.

"DPR no longer needs to include ART in the agenda for the ratification of laws. We can get rid of the AS trap, including opening ourselves up to cooperation with other countries," he added.

According to him, the contents of the ART are detrimental to the national economic interest. Celios noted that there were 7 problematic points in the agreement.

"First, the flood of imported food products, technology and oil and gas pressures the trade balance and the balance of payments at once. The rupiah could weaken against the US dollar," said Bhima.

Furthermore, he also highlighted the point where Indonesia is restricted from cooperating with other countries.

"AS seolah menjadikan Indonesia blok eksklusif perdagangan," katanya.

Third, ART is considered to be deadly to domestic industrialization without technology transfer, and the elimination of TKDN. Deindustrialization, continued Bhima, is the consequence if ART is ratified.

"Fourth, the absolute ownership of foreign companies in mining without any divestment. Fifth, the enemy of US trade is the enemy of Indonesia. This means that Indonesia must also provide sanctions to countries that are opposite to the US," said Bhima.

"Sixth, Indonesia's transhipment opportunities are closed. Seventh, the transfer of personal data abroad threatens data security and the digital ecosystem," he added.

Previously, the US Supreme Court ruled to overturn some of Trump's global tariff policies.

On Friday (20/2 local time), the US Supreme Court, by a 6-3 vote, ruled that Trump was not authorized to impose global tariffs under the International Emergency Economic Powers Act (IEEPA).

Trump called the US Supreme Court's (SC) ruling "very disappointing" and accused the SC of being influenced by "foreign interests".