Indonesia-US Customs Agreement: A “Super Deal,” Really?
After several weeks of negotiations, Indonesia has secured a reduction in the customs duties initially announced by US President Donald Trump. While Jakarta hails this diplomatic success, several economists point to persistent imbalances.
"A new era of mutual benefits," Indonesian President Prabowo Subianto hailed on his Instagram account on Wednesday, July 16, after Donald Trump announced a reduction in customs duties on Indonesian products imported into the United States, reduced to 19% from the 32% initially announced by Washington.
The Trump administration aims to offset the US trade deficit with Indonesia, which is expected to reach nearly $18 billion (€15 billion) in 2024. In return, Jakarta agrees to purchase billions of dollars worth of US energy and agricultural products, as well as 50 Boeing aircraft. The US president described the agreement as a "super deal," granting "full access to the Indonesian market" without tariffs on US products.
“With a rate of 19%, Indonesia benefits from the lowest tariff among ASEAN countries [an organization that brings together ten Southeast Asian states], with the exception of Singapore,” said Indonesian Trade Minister Budi Santoso. According to him, this reduction should “strengthen the competitiveness of Indonesian manufactured products in the United States and thus boost the industrial sector,” reports the magazine .
Courrier International
