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View all search resultsThe provisions in the Indonesia-United States Agreement on Reciprocal Trade (ART) have once again drawn public scrutiny. This time, the debate extends beyond tariff reductions to a more sensitive issue: the possible easing of halal certification requirements for US products entering the Indonesian market.
The administration of President Prabowo Subianto has reached a deal with Freeport-McMoRan as part of Indonesia’s broader negotiations to reduce punitive tariffs imposed by the United States under President Donald Trump. The agreement requires Freeport to divest additional shares in PT Freeport Indonesia (PTFI), which operates major mining assets in Papua, in exchange for an extension of its mining concession to the end of the mine’s life cycle. While the deal strengthens US access to critical minerals, it has drawn criticism for the limited involvement of indigenous Papuans.
Local think tanks are weighing in on the limited policy space and domestic benefits of the new US-Indonesia trade deal, even as businesses and policymakers wait to decide next moves amid the limbo left by the US Supreme Court's ruling.
The deal appears to take aim at what analysts have said are concerns in Washington about China's stranglehold on many critical minerals and the offshoring of Chinese companies' operations to countries like Indonesia.
The accord sets a 19-percent tariff on Indonesian goods entering the United States. Jakarta is also to exempt US companies from local content requirements and address and prevent barriers to US agricultural products sold in Indonesia.
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