A new trade agreement between Indonesia and the United States has triggered heated debate in Jakarta, with critics zeroing in on controversial provisions allowing the transfer of personal data abroad and relaxing local content requirements for US companies.
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While officials say the deal is not yet final, observers are split over whether the concessions mark a pragmatic step towards attracting investment or a risky erosion of digital sovereignty and economic self-reliance.
The proposed framework, announced in a White House statement last week, outlines a reciprocal trade deal under which US President Donald Trump agreed to reduce tariffs on Indonesian goods to 19 per cent, lower than the initial 32 per cent tariff announced in April.
Under the agreement, Indonesia conceded on several grounds, including allowing US companies to transfer personal data of Indonesian citizens out of its territory, as well as exempting US companies and originating goods from local content requirements, among others.
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Indonesia’s Prabowo reaches ‘landmark deal’ with Trump, saying trade talks will continue
Indonesia’s Prabowo reaches ‘landmark deal’ with Trump, saying trade talks will continue
“Indonesia will provide certainty regarding the ability to move personal data out of its territory to the United States through recognition of the United States as a country or jurisdiction that provides adequate data protection under Indonesia’s law. American companies have sought these reforms for years,” Washington said in a fact sheet issued on July 22 alongside the agreement.
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