After Court Shock, Prabowo Says Trump’s 10% Tariff Favors Indonesia

WASHINGTON DC, Investortrust.id — President Prabowo Subianto said on Saturday, Feb 21, 2026 in Washington DC that Indonesia is ready for all scenarios after the US Supreme Court struck down President Donald Trump’s reciprocal tariff policy and Trump immediately imposed a new 10% global tariff, a move he described as relatively favorable for Indonesia as bilateral negotiations continue.

Prabowo said the government respected US domestic politics and would closely monitor developments while safeguarding trade terms already agreed between the two countries.

The US Supreme Court invalidated Trump’s previous global reciprocal tariffs on Friday, Feb 20, 2026, the same day Indonesia and the United States finalized an Agreement on Reciprocal Trade.

Within hours, Trump announced a blanket 10% tariff on imports from all countries, creating fresh uncertainty for trading partners that had just concluded negotiations.

“Ya we are ready to face all possibilities, we respect the domestic politics of the United States, we will see the developments,” Prabowo said after a 30-minute meeting with Trump. “I think 10% is favorable,” he added.

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Negotiated Certainty Meets Legal Volatility

Indonesia had negotiated a reduction of US import duties on its goods to 19% from 32% under the Agreement on Reciprocal Trade, after nearly a year of talks.

Certain products were expected to receive zero reciprocal tariffs, while Indonesia agreed to eliminate 99% of tariff barriers on US goods.

Coordinating Minister for Economic Affairs Airlangga Hartarto said Jakarta had anticipated potential legal turbulence in Washington before signing the agreement.

“Indonesia is ready with various scenarios. The scenario of the Supreme Court decision had been discussed with USTR before we signed,” Airlangga said.

He acknowledged that the delegation did not foresee Trump’s immediate move to impose a universal 10% tariff. “The 10% decision we did not know, but the possibility of cancellation was somewhat visible,” he said.

The agreement will enter into force 60 days after signing, during which both governments must consult their respective legislatures.

Airlangga said the United States may consult Congress or the Senate, while Indonesia will coordinate with its parliament, the House of Representatives.

Jakarta is now seeking to preserve zero-tariff commitments for strategic sectors including coffee, cocoa, crude palm oil, electronics supply chains, textiles, and footwear.

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“If others are subject to 10%, but those already granted 0% should remain 0%, that is what Indonesia is requesting,” Airlangga said.

Cabinet Secretary Teddy Indra Wijaya framed the new 10% tariff as arithmetically better than the previously negotiated 19% ceiling.

“From 19% to 10% is better in calculation, but in principle Indonesia is ready for all possibilities,” Teddy said.

The broader question now facing Jakarta is whether the legal rollback of Trump’s earlier tariffs will produce differentiated treatment for countries that have already signed trade accords.

Airlangga said US officials indicated there would be cabinet-level decisions for countries that have concluded agreements.

Trump’s 10% tariff is set to last 150 days and may be extended or revised through new regulations.

For Indonesia, the 60-day consultation window offers time to defend preferential access while recalibrating for a shifting US legal and political landscape.

Prabowo struck an upbeat tone despite the volatility. “We negotiated for quite a long time on tariffs and trade, but the result is good, mutually beneficial and mutually respectful,” he said.