US-Indonesia Trade Agreement Raises Concerns Over Policy Constraints
The US-Indonesia Agreement on Reciprocal Trade, signed on February 19, 2026, aims to preserve Indonesia's access to the US market and protect labor-intensive exports. The agreement extends beyond tariffs, covering investment, digital services, and security alignment. However, it is viewed as asymmetrical, with Indonesia facing broad commitments that could limit its future policy space, particularly in industrial policy and digital regulation. The agreement necessitates domestic reforms, but experts argue these should be driven by Indonesia's interests rather than US pressure. 
