Indonesia’s US trade deal faces a sovereignty reckoning at home

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Indonesia and the United States signed a trade agreement on February 19th, negotiated to avoid a potential 32% US tariff on Indonesian exports. The agreement, signed by President Prabowo Subianto, reduces the tariff to 19% and grants zero-tariff access to 1,819 Indonesian goods. In return, Indonesia will extend tariff exemptions to over 99% of American goods and eliminate non-tariff barriers like local content requirements and certain halal certifications for US companies. The deal has faced criticism in Indonesia, with some viewing it as a surrender of sovereignty due to the numerous obligations to the US. The Indonesian government defends the agreement as mutually beneficial.
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