Description: US President Trump on Truth Social announced the conclusion of a trade deal with Indonesia, which would pay 19% tariffs for exports on the US markets while agreeing towards imposing no tariffs on US exports in Indonesia. Indonesian President Prabowo Subianto stated the deal to have been concluded after he talked over the phone with the American President agreeing to lower the levies from the previously imposed 32% of tariffs on Indonesian exports to the US. Indonesia reportedly also agreed towards purchasing $15 billion worth of US energy, $4.5 billion in US agricultural products and the acquisition of up to 50 Boeing aircrafts, according to Trump’s statements. Trump so far managed to secure trade deals with the UK and the US and engage into concessions with China while facing tougher resistance from the EU, Japan and South Korea. Trade between the US and Indonesia amounted to $40 billion in 2024, which put Indonesia outside of the US’ top 15 trade partners.
Impact: Trump’s trade negotiation strategy seems to predominantly revolve around securing initial trade deals with countries across Asia, most probably attempting to encircle China and to start economically pressuring the country in its sphere of geoeconomic influence towards future trade concessions. Following the deals with Vietnam and Indonesia, Trump could focus next on securing trade deals with other Asian nations high on his priority list, such as Japan or South Korea. Indonesia being one of the most rapidly developing economies in Asia in recent months has proclaimed geostrategic ambiguity, having secured multi layered cooperation with China, the US and Russia. The southeast Asian country represents an attractive geopolitical target because of its geographical positioning which makes access to key maritime trade routes in the Indo – Pacific readily available. Indonesia is becoming an influential regional player potentially aiming at becoming a power broker between China and the US in the region while aspiring towards stable economic growth and development, making it a major regional factor in the long – term.