A US trade deal that mostly asks Indonesia to give

A trade deal between Indonesia and the United States is called "reciprocal," but a close reading suggests it mostly asks Indonesia to give. Writing in The Diplomat, Muhammad Ikhsan Alia points out that in the 45-page Agreement on Reciprocal Trade, signed in February 2026, the phrase "Indonesia shall" appears more than 200 times, while "United States shall" appears just nine times, a ratio of more than 22 to 1.

The terms lean the same way. Indonesia agreed to drop tariffs, the taxes on imports, from 99 percent of American goods, to buy US$33 to 38 billion in US energy, farm products, and aircraft, and to give up the right to tax digital services. In return, the United States kept a 19 percent tariff on Indonesian goods, higher than the 10 to 15 percent charged to some other countries. The author warns the deal may even clash with Indonesia's constitution: he counts eight parts that conflict with the 1945 charter, including the article on control of natural resources. As part of the deal, mining permits for the American firms Freeport-McMoRan and ExxonMobil were extended for decades.

Alia argues Indonesia should pause before making the deal final, and work with neighbours like Vietnam and Malaysia to push back together, rather than signing away so much on its own.

Why it matters

Trade deals shape the price and supply of goods, from fuel to food to phones, so a lopsided one can lock in costs for years. Giving up the right to tax digital services or to fully control natural resources also touches Indonesia's sovereignty and its budget. Watch whether parliament pauses or changes the deal before it is ratified, or whether it passes as written.