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View all search resultsIndonesia’s official response to the attack on Iran by Israel and the United States is unusual to say the least. The Foreign Ministry in a statement said Indonesia deeply regretted the breakdown of the negotiations between the US and Iran, offered to mediate to break the impasse between the two countries, and added that President Prabowo Subianto had “stated his readiness to launch diplomatic visits straight to the heart of the conflict, if necessary”.
As Indonesia leans into informal diplomatic forums like the Board of Peace, it risks trading its historic "independent and active" principles for a personalized foreign policy that blurs the line between strategic leadership and quiet alignment.
The Indonesia–United States Agreement on Reciprocal Trade (ART) reaches far beyond conventional tariff negotiations. While public debate has focused on potential export gains, the deal also includes provisions on investment, subsidy transparency and alignment with US regulatory standards that, over time, could narrow Indonesia’s room for maneuver in shaping its own industrial policy and development strategy.
Indonesia’s foreign policy has undergone major changes since President Prabowo Subianto took office in October 2024, but no change is more dramatic than in his Middle East policy, particularly in his approach to the Palestinian-Israeli conflict.
Tasked with reviewing the police’s institutional structure, governance, and legal framework, the team has finalized 10 comprehensive volumes incorporating public input and proposed legislative and regulatory changes.
Indonesia’s much-celebrated breakthrough in lowering United States tariffs is already losing its shine. Just one day after the Agreement on Reciprocal Trade (ART) was sealed, securing a headline tariff cut to 19 percent, the US Supreme Court ruled that President Donald Trump’s earlier tariff regime was unlawful. The question now is not how deep the cut appears on paper, but whether Indonesia has genuinely strengthened its bargaining position or is merely navigating an increasingly unpredictable trade landscape.
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