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View all search resultsThe Agreement on Reciprocal Tariffs (ART) with the United States may make it harder for Indonesia to sustain policy flexibility in dealing with other countries and various situations in the international geopolitical stage, experts have warned.
For greater durability, Jakarta needs to explore pathways toward a more institutionalized trade framework with Washington, while preparing a US+1 contingency strategy and articulating a clearer vision of its role within the evolving international economic order.
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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