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Indonesia–US Trade Deal: A Relief with Strings Attached

Monday, July 21, 2025

Indonesia secured tariff relief from the United States in exchange for sweeping market concessions. Weakening public finances and eroding the trade surplus.

arsip tempo : 177349230950.

Illustration. TEMPO/Alvin Siregar. tempo : 177349230950.

INDONESIA and the United States have finally concluded a long-anticipated trade agreement. Effective August 1, President Donald Trump will impose a 19 percent import tariff on Indonesian goods entering the US market, substantially lower than the previously threatened 32 percent rate. 

The tariff reduction, however, was far from unconditional. In return, Indonesia has extended sweeping concessions. Chief among them is the elimination&md

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