Kendari, Southeast Sulawesi, April 2026 – Indonesia for Global Justice (IGJ), in collaboration with the Southeast Sulawesi National Village Commission (Komnasdesa), the Muhammadiyah Central Board of Wisdom and Public Policy (LHKP), and Muhammadiyah University of Kendari, held a Focus Group Discussion entitled: “The Impact of the United States-Indonesia Trade Agreement on Ecological Justice and the Local Economy in Southeast Sulawesi.” The event, held on April 23, 2026, at the Muhammadiyah University of Kendari campus, was attended by representatives of the Southeast Sulawesi Provincial Government, academics, journalists/media, and civil society groups in Southeast Sulawesi.
The discussion, moderated by Parid Ridwanuddin, a researcher and academic active in the Muhammadiyah Central Board of LHKP, emphasized the importance of critiquing the Agreement on Reciprocal Trade (ART) between Indonesia and the United States, signed on February 19, 2026, highlighting the imbalance in trade relations and its implications for economic sovereignty, ecological justice, and local communities.
Rahmat Maulana Sidik, Executive Director of Indonesia for Global Justice (IGJ), stated that “The US-Indonesia Trade Agreement secures US investment and benefits worth US$33 billion, or 528 trillion, from Indonesia. Meanwhile, Indonesia actually contains obligations for US interests. This is more accurately described as colonialism disguised as a trade agreement,” Maulana stated.
Regarding critical minerals, Indonesia is obligated to facilitate foreign investment from the United States in its activities to explore and mine critical minerals in Indonesia. However, the ecological and environmental burdens are borne by Indonesia for restoration.
“This is the exploitation of Indonesia’s natural resources, but the United States benefits from it, and then Indonesia bears the damage, both ecologically and economically. So the question is, what’s the difference between this and colonialism?” Maulana added.
Maulana also stated that the Indonesian government should follow Malaysia’s example by canceling its trade agreement with the United States. Besides harming his country, the legal basis for the International Emergency Economic Powers Act (IEEPA 1977), which Donald Trump used to impose tariffs and trade agreements, has been declared illegal/unconstitutional by the United States Supreme Court. Therefore, Malaysia firmly rejects implementing the trade agreement with the US. So, why does Indonesia still want to continue with a trade agreement that is legally illegal and has the potential to harm our economic development? Maulana concluded.
On the other hand, Prof. Ir. Yani Taufik, M.Sc., Ph.D., a lecturer at Halu Oleo University, as one of the speakers, explained that “The economic relationship between Indonesia and the United States is asymmetrical. The US excels in technology, capital, and negotiating capacity, while Indonesia remains dependent on commodity exports and risks experiencing unequal profits and being trapped as a raw material supplier. Furthermore, “From a political economy perspective, the ART has the potential to shift the state’s role from an active regulator to a market facilitator and limit strategic policy instruments, which ultimately contradicts the spirit of Article 33 of the 1945 Constitution,” stated Prof. Yani.
Muhamad Karim, a lecturer at Trilogi University, emphasized that ecological sovereignty and local economics cannot be exchanged for mere market access. He asserted that the ART is a new form of colonialism that is detrimental to Indonesia,” Karim asserted.
This phenomenon cannot be separated from the global economic agenda which is oriented towards capital accumulation. “The “America First” policy promoted by Donald Trump reflects an attempt to dominate strategic resources, including critical minerals, amidst global competition—particularly between the United States and China in the context of the energy transition,” Karim concluded.
Kiki Sriyanti, from the Southeast Sulawesi National Village Commission, stated that the United States-Indonesia Trade Agreement has the potential to accelerate natural resource extraction without adequate environmental and socio-economic protection, thus exacerbating the local ecological and economic crisis. “Local communities have the potential to further lose access to land, local economic resources, and even participation in the governance of critical minerals in Southeast Sulawesi,” Kiki stated.
David Efendi, Secretary of the Muhammadiyah Central Executive Board’s Environmental and Forestry Agency (LHKP), stated that, according to the mandate of the 48th Muhammadiyah Congress, international cooperation must be conducted on an equal basis, not on a basis of subordination that erodes national dignity. Therefore, Muhammadiyah’s official stance is to reject and request that this trade agreement be canceled, using the termination mechanism in the interests of the constitution, upholding Article 33 of the 1945 Constitution, which affirms that natural resources are the nation’s sovereignty, protecting the interests of small communities, and prioritizing local ecological and economic sustainability.” David Efendi revealed.
Mando Maskuri, Representative Residents of Wawonii Island asserted that the ART will further destroy small islands in Indonesia, as experienced on Wawonii Island, which has been destroyed to serve nickel mining. Therefore, he called for the ART to be revoked and all mining permits on small islands, particularly Wawonii, to be revoked. “The issuance of new mining permits on Wawonii Island has created new trauma for residents who have been fighting to evict mining companies, and the government’s non-compliance with the mining ban on Wawonii Island, based on Law No. 27/2007 in conjunction with Law No. 1/2014 concerning the Management of Coastal Areas and Small Islands, has the potential to cause environmental damage, social conflict, and the appropriation of living space for Wawonii Island residents,” Mando stated.
This discussion generally emphasized that local governments, both provincial and district/city governments throughout Indonesia, will not gain much from the ART between Indonesia and the US. Instead, local governments will become mere spectators and sufferers from this ambitious trade agreement. Based on this, there will be significant opposition from local governments, due to the potential for a wider crisis and ecological disaster resulting from the extraction of mineral resources to meet US interests.
Furthermore, this discussion calls on the central and regional governments to seriously develop local resources and economic potential as a significant economic force in the future. It is time to break free from dependence on a short-term extractive economy. At the same time, we have local economic strengths in the form of spices, coconuts, cloves, nutmeg, capture fisheries, and other sustainable potential for Indonesia’s future.
Contact Persons:
● Rahmat Maulana Sidik, Executive Director of Indonesia for Global Justice (IGJ) – rahmat.maulana@igj.or.id.
● David Efendi, Secretary of the LHKP PP Muhammadiyah – +62 813-5718-0841.
● Kiki Sriyanti, KOMNASDESA Southeast Sulawesi – +62 811-4031-770.