Indonesia ’s efforts to deepen trade with the United States while maintaining close economic ties with China are being tested after a report revealed Washington had linked lower tariffs to the purchase of US-made maritime surveillance drones for use near the South China Sea.
The development has highlighted the balancing act facing Jakarta, which analysts say is seeking to preserve strategic flexibility as trade negotiations with Washington increasingly intersect with security and geopolitical considerations.
The assessment follows revelations based on a leaked Indonesian government document, reported on by The Straits Times, which showed Washington had proposed cutting its so-called reciprocal tariff on Indonesian goods if Jakarta agreed to buy US unmanned aerial systems and publicly announce the procurement.
The reported request comes as Indonesia and the US are still negotiating a trade deal that would lower the tariff rate from a threatened 32 to 19 per cent, with talks progressing more slowly than expected. Jakarta had hoped to conclude negotiations last year.
Indonesia’s Ministry of Defence responded to the report by saying that it had not been informed of such a request.
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