
Background and Strategic Importance The United States and Indonesia have long maintained a complex trade relationship. Indonesia, Southeast Asia’s largest economy, is a critical partner for Washington’s Indo-Pacific strategy. With a population of over 270 million and a rapidly growing middle class, Indonesia represents both a major export market and a strategic counterweight to China’s…

A balancing act between giants – leveraging opportunities with the US, EU and China while defending domestic industrialization priorities Author: Maria Pechurina, Director of International Trade @ Peacock Tariff Consulting Indonesia has quickly emerged as a dynamic hot-spot for global supply chain reshuffling, successfully balancing its relationships with the US, EU, and China while prioritizing domestic industrialization…
Indonesia / U.S. tariff deal Overview of the New Trade Agreement In July 2025, Indonesia and the United States finalized a bilateral trade deal after direct negotiations between Presidents Prabowo Subianto and Donald Trump. This agreement was forged under pressure Trump had threatened a steep 32% tariff on Indonesian goods starting August 1. The deal…