The White House announced a new 10% import tariff effective for 150 days starting February 24, 2026, at 00:01 EST (12:01 WIB). The tariff is ad valorem and applies to goods imported into the United States.
President Donald Trump previously signed an executive order to impose a global 10% tariff, following a ruling by the Supreme Court of the United States stating that the President does not have the authority to impose global tariffs under IEEPA.
Trump stated that national security-based tariffs will remain in effect. This policy may increase global trade uncertainty and create short-term pressure on international supply chains.
— Kontan, February 21, 2026
Downstreaming Contributes 30% of 2025 Investment
Minister of Investment and CEO of Danantara Indonesia, Rosan Perkasa Roeslani, stated that downstreaming projects—particularly in minerals—contributed 30.2% of total 2025 investment amounting to Rp584.1 trillion, up 43.3% compared to 2024.
In addition to minerals, downstreaming is also being driven in palm oil, timber logs, and rubber. The government has established partnerships with global SWFs such as CIC, JBIC, QIA, and RDIF, and secured a revolving facility of approximately US$10 billion.
Through Danantara, there are 20 downstreaming projects in the pipeline with total investment of US$26 billion and the potential to create 600,000 jobs; 6–7 projects have already broken ground in early 2026. The objective is to capture domestic value added through improved productivity, efficiency, and good governance.
— Kontan, February 16, 2026
Bank Indonesia Holds BI-Rate at 4.75% to Safeguard Stability
Bank Indonesia (BI) maintained the BI-Rate at 4.75% (deposit facility 3.75% and lending facility 5.50%) during the Board of Governors Meeting (RDG) on February 18–19, 2026.
Governor Perry Warjiyo stated that the policy aims to maintain rupiah stability amid global uncertainty, while ensuring inflation remains within the 2.5% ±1% target range for 2026–2027. BI remains open to policy rate cuts should external and domestic stability conditions permit.
— Kontan, February 19, 2026
Indonesia–U.S. Agree on US$38.4 Billion Trade & Investment Cooperation
Indonesia and the United States agreed on trade and investment commitments worth US$38.4 billion (approximately Rp649.4 trillion) during the U.S.-Indonesia Business Summit 2026, organized by the U.S. Chamber of Commerce, the U.S.-ASEAN Business Council, and the U.S.-Indonesia Society.
President Prabowo Subianto reaffirmed Indonesia’s commitment to governance, transparency, and international standards to maintain investor confidence.
Breakdown:
- Agro sector: US$4.5 billion purchase commitments (soybeans, wheat, corn, cotton, and other products).
- Manufacturing sector: US$33.9 billion, including Kadin–USABC partnerships, industrial raw material supply, and major semiconductor industry investments.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the completion of the Agreement on Reciprocal Trade (ART) will strengthen market access, competitiveness, and business certainty for both countries.
— Antara, February 20, 2026
Indonesia Commits to Removing Export Restrictions on Critical Minerals to the U.S.
Indonesia committed to removing export restrictions on several strategic industrial commodities to the United States, including critical minerals and rare earth elements, as outlined in the Agreement on Reciprocal Trade.
The measure aims to strengthen supply chain connectivity, ensure secure and sustainable mineral supply for the U.S., and promote bilateral trade and investment growth.
Despite opening export access, the government emphasized that governance strengthening remains a priority. Mining and downstreaming activities—including by foreign companies—must align with national quotas and comply with prevailing taxation, environmental, and labor regulations.
— Kontan, February 20, 2026
Government Launches RENAKSI 2025–2030 to Strengthen Blue Carbon
The government launched the National Action Plan for the Protection and Management of Blue Carbon Ecosystems (RENAKSI) 2025–2030 to enhance Indonesia’s contribution to climate change mitigation through mangrove and seagrass protection.
The document aligns implementation strategies with funding schemes based on Gender Equality, Disability, and Social Inclusion (GEDSI) principles.
Indonesia holds approximately 17% of the world’s blue carbon reserves, supported by 3.45 million hectares of mangroves and 660,000 hectares of seagrass meadows. RENAKSI contains 21 action plans to be translated into cross-sector priority programs with direct community impact, and forms part of the strategy to achieve NDC targets and FOLU Net Sink 2030.
— Antara, February 20, 2026
Bahlil Lahadalia Reaffirms Mandatory Downstreaming of Critical Minerals Despite RI–U.S. Agreement
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia reaffirmed that critical mineral commodities must continue to undergo domestic downstream processing, despite Indonesia and the United States agreeing on the ART following a meeting between Presidents Prabowo Subianto and Donald Trump.
The government confirmed there will be no export of raw minerals; exports are only permitted after refining and smelter development in Indonesia.
Indonesia offers two schemes for U.S. investors: direct exploration or partnership/joint ventures with state-owned enterprises (SOEs). The policy remains based on equity treatment and is open to all countries, with the primary objective of creating value added, strengthening downstreaming, and ensuring domestic economic benefits.
— Antara, February 21, 2026
PSN Wiraraja–U.S. Cooperation Strengthens Semiconductor Industry
The Indonesian Industrial Estate Association (HKI) assessed that collaboration between the PSN Wiraraja GESEIP project in Galang, Batam, and U.S. partners will strengthen the national semiconductor and green energy ecosystem.
The project includes downstream processing of silica quartz into polysilicon for semiconductors and solar cells.
The initial investment phase amounts to US$4.9 billion, with potential expansion up to US$26.7 billion to build an integrated production chain. The cooperation also includes technology transfer, energy infrastructure development, and the creation of thousands of skilled jobs to strengthen Indonesia’s position in the global supply chain.
— Antara, February 19, 2026