Indonesia’s pursuit of new trade agreements with the United States, aimed at escaping President Donald Trump’s sweeping tariff threats, faces an uphill battle unless Jakarta pinpoints the sectors that give it real bargaining leverage, experts say.
While Indonesia is “somewhat immune” to the prospect of steeper US tariffs as many of the country’s goods shipped to the US are subject to levies, officials have said they are pursuing a bilateral free-trade agreement (FTA) with the US in a bid to boost ties and persuade Washington to “lower the tariffs” on Indonesian products.
The move is also expected to help Indonesian exporters “penetrate the American market”, according to trade minister Budi Santoso.
“That’s why we have to be ready. What’s important is that we have competitiveness … then we can compete with other countries. I think we won’t lose,” Budi said last week.
Southeast Asia’s biggest economy does not have a bilateral FTA with Washington, but recorded a US$16.8 billion trade surplus with the US last year, its highest with any single partner, while importing just US$9.4 billion worth of American goods and shipping US$26.3 billion stateside.
Deal or no deal
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