"Airlangga Hartato was all smiles on Feb. 19 as he signed his name to what he called a 'win-win' deal. After four trips to Washington, seven formal negotiating rounds, and nine meetings with U.S. Trade Representative Jamieson Greer, Indonesia's economy minister had finally secured a reduction in U.S. duties on Indonesian goods—from a punishing 32% to a more tolerable 19%."
"The agreement, grandly titled Toward a New Golden Age for the U.S.-Indonesia Alliance, promised tariff exemptions for key exports like palm oil, coffee, cocoa, and rubber. In exchange, Jakarta pledged to scrap barriers on more than 99% of U.S. imports and commit to some $33 billion in purchases of American energy, aircraft, and agricultural products."
"The economy is heading into a perfect storm, says Siwage Dharma Negara, co-coordinator of the Indonesia Studies Program at the ISEAS-Yusof Ishak Institute."
Airlangga Hartato signed a trade agreement reducing U.S. duties on Indonesian goods from 32% to 19%. The deal includes tariff exemptions for key exports and commitments from Jakarta for U.S. imports. However, the U.S. Supreme Court struck down previous tariffs, complicating the situation. Indonesia's economy faces multiple challenges, including market drops, negative outlooks on sovereign debt, potential return of tariffs, and disruptions from the Iran war affecting fuel supply. Experts warn of a looming economic crisis.
Read at Fortune
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