Jakarta, MINA – Trade terms between Indonesia and the United States have drawn criticism from economist Prof. Syafruddin Karimi of Andalas University, who called the agreement “highly unfavorable” to Indonesia.
“The US gains full access to Indonesia’s domestic market with zero tariffs, while Indonesian exports to the US remain subject to a 19% tariff. This creates a deeply unequal trade relationship,” Syafruddin said on Wednesday.
He warned that the agreement paves the way for an influx of cheaper American imports, particularly in agriculture, automotive, and energy, putting pressure on local industries and limiting opportunities for domestic industrialization.
Syafruddin also criticized Indonesia’s large-scale purchasing commitments, including $15 billion in US energy imports, $4.5 billion in agricultural products, and 50 Boeing aircraft.
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“These appear more like unilateral obligations than mutually beneficial trade,” he said. He argued that purchasing Boeing planes is poorly timed, likely to strain the state budget and national airlines amid weakened consumer spending.
He further warned that the influx of US agricultural imports, such as soybeans, corn, and beef, could suppress income for Indonesian farmers.
Earlier, US President Donald Trump announced that under the new deal, Indonesia agreed to maintain a 19% tariff on all exports to the US, while US goods would enjoy tariff- and barrier-free entry into Indonesia. Trump hailed the agreement as the first to grant America full access to the Indonesian market. []
Mi’raj News Agency (MINA)
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