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View all search resultsProtecting our economic sovereignty
Major economies like the US, China and the EU have been rewriting their rules on trade and investment based on strategic priorities rather than shared principles.
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Coordinating Economy Minister Airlangga Hartarto (left) shakes hands with United States Trade Representative (USTR) head Jamieson Greer following a meeting on reciprocal tariff policy in Washington, DC on July 10, 2025.
(Courtesy of/Office of Coordinating Economy Minister)
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egotiations on a bilateral trade agreement with the United States are taking longer than earlier announcements suggested, which is not surprising, given that the handshake deal clinched in July leaves many open questions.
Both governments presented that deal to their home audiences as a major success, but in Indonesia’s case, that was unconvincing. It is hard to sell a 19 percent US import tariff on most Indonesian exports as a positive outcome, especially if US goods are to enter the Indonesian market duty-free.
While 19 percent is lower than the 32 percent rate US President Donald Trump had threatened earlier, it still makes Indonesian products less competitive than they used to be in the world’s largest consumer market.
When announcing the deal on July 15, President Trump called it "a huge win” for US automakers, tech firms, farmers and manufacturers.
Who are the huge winners on our side?
We are not privy to the negotiations, but we know they are taking longer than expected, which suggests that some thorny details are holding things up. According to unnamed US officials, Indonesia is reneging on commitments it made in the summer.
It would be prudent for our negotiators to tread very carefully to achieve the best possible outcome, one that is in the interest of Indonesian rather than US businesses and consumers, because, well, Indonesia First.
