bloomshorts Indonesia and US Enter New Trade Chapter
Indonesian President Prabowo Subianto has heralded a ‘new era’ in trade relations with the United States, following President Donald Trump’s decision to reduce tariffs on Indonesian goods from 32% to 19%. This significant move comes as both nations seek to strengthen their economic ties.
Behind the Deal
The agreement, reached after direct negotiations between the two leaders, includes Indonesia’s commitment to purchase 50 Boeing jets and increase imports of US energy, agriculture, and merchandise. President Prabowo expressed optimism about the future of US-Indonesia relations, hinting at a possible visit to Washington later this year.
Implications and Reactions
While the deal marks a milestone in US-Indonesia trade relations, experts caution about the potential risks to Indonesia’s trade balance. The agreement also introduces measures to penalize goods transiting through Indonesia from China, reflecting the broader context of US trade policies under the Trump administration.
