Indonesia Defends Solar Panel Exports Amidst U.S. Anti-Subsidy Investigation
Jakarta – Indonesia is preparing to vigorously defend its solar panel exports against newly imposed tariffs by the United States, following the initiation of an anti-subsidy investigation by the U.S. Department of Commerce (USDOC). Trade Minister Budi Santoso affirmed the government’s commitment to protecting the national industry throughout the investigation process, which is expected to conclude in July 2026.
U.S. Imposes Preliminary Tariffs
On Tuesday, February 24, 2026, the USDOC announced the imposition of preliminary compensatory import duties (BMIS) on crystalline silicone photovoltaic cells, whether assembled into modules or not, from several countries, including Indonesia. The tariffs for Indonesian producers range from 85.99% to 143.30%, with a general tariff rate of 104.38% [Jakarta Globe].
Indonesia’s Position Compared to Other ASEAN Nations
Minister Santoso highlighted that the tariffs imposed on Indonesia are comparatively lower than those levied on other ASEAN countries. Malaysia faces tariffs of 14-168%, Vietnam 68-542%, Thailand 99-263%, and Cambodia exceeding 3,400%. This comparison, according to Santoso, demonstrates a more moderate approach by U.S. Authorities towards Indonesia [Jakarta Globe].
Government Cooperation and Data Transparency
Since the case began in August 2025, Indonesia has proactively responded to requests for information, submitting complete and timely questionnaire responses, supporting data, and technical clarifications. The Indonesian government is emphasizing the importance of active industry participation to avoid the application of the Adverse Facts Available (AFA) method, which could lead to higher tariff rates. The AFA method involves the investigating authority using available data if a country is deemed uncooperative [Jakarta Globe].
Coordination with Industry Stakeholders
The Directorate General of Foreign Trade at the Ministry of Trade is coordinating closely with Indonesian businesses, focusing on strengthening data consolidation and providing technical assistance in preparation for field verification by U.S. Authorities, scheduled for April 2026 [Jakarta Globe].
Broader Trade Context: The Prabowo-Trump Agreement
This dispute arises shortly after Indonesia and the United States signed the Agreement on Reciprocal Trade (ART) on February 19, 2026. The agreement secured Indonesia a 19% reciprocal tariff on most exports to the U.S., reduced from an initially threatened 32%, and zero-tariff access for 1,819 product lines, including palm oil, coffee, cocoa, rubber, semiconductors, and textiles. The deal also included US$38.4 billion in trade and investment commitments, including a purchase of 50 Boeing aircraft and increased energy imports from Indonesia [Jawawa.id].
Potential Impact of Supreme Court Ruling
However, the validity of the ART is now under scrutiny following a U.S. Supreme Court ruling on February 26, 2026, declaring that President Trump’s tariff powers under the International Emergency Economic Powers Act were unconstitutional [Jawawa.id]. This ruling casts uncertainty over the future of the trade agreement and the tariffs imposed on Indonesian solar panels.
Transshipment Concerns and Regional Impact
The U.S. Is also cracking down on transshipment – the practice of routing goods through third countries to avoid tariffs – which could further impact Southeast Asian economies. Indonesia’s Trade Minister Budi Santoso has previously expressed opposition to transshipping [Al Jazeera].