Indonesia-US tariff deal & policy making freedom
https://www.straitstimes.com/asia/se-asia/indonesia-denies-sovereignty-risk-in-us-trade-deal-expected-in-january
Posted by Lone-T
Indonesia-US tariff deal & policy making freedom
https://www.straitstimes.com/asia/se-asia/indonesia-denies-sovereignty-risk-in-us-trade-deal-expected-in-january
Posted by Lone-T
1 comment
SS: Indonesia has firmly denied sovereignty risks in its impending US tariff deal—set for signing by Presidents Prabowo and Trump in late January 2026—insisting it remains “limited solely to trade matters” after resolving sticking points, including apparent exclusion of controversial “security clauses” found in similar US pacts with Malaysia and Cambodia that allow unilateral termination over third-party deals jeopardizing American interests.
The agreement slashes US tariffs on Indonesian exports from 32% to 19%, mandates removal of non-tariff barriers (e.g., local content rules), and commits Jakarta to US$19.5B in US energy/agricultural imports, while granting US access to critical minerals. Amid Trump’s bilateral blitz to counter China’s regional sway and Jakarta’s non-aligned hedging (including deeper Russia ties), does this “reciprocal trade” framework secure economic wins for Southeast Asia’s largest economy without subcontracting foreign policy, or subtly entrench US leverage in a multipolar Indo-Pacific where great-power coercion masquerades as fair trade?
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