Uncertainty looms over Indonesia-US trade pact after legal blow in Washington

[JAKARTA] Indonesian businesses are scaling back risk and putting US-focused expansion plans on hold after the country’s tariff deal with Washington was thrown into limbo by a US Supreme Court ruling on Friday (Feb 20) that struck down US President Donald Trump’s reciprocal tariff policy.

While the ruling removes the immediate tariff threat, broader trade uncertainty remains as Trump signals he may push ahead with the 15 per cent tariff.

“Business planning this year will continue to prioritise prudence, market diversification and stronger internal efficiency, while awaiting greater clarity on policy direction,” said Shinta Widjaja Kamdani, chairperson of the Indonesian Employers Association (Apindo).