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The art of alignment: Navigating Indonesia’s strategic autonomy in the shadow of Indonesia – United States economic integration
Changes in United States tariff policies and a US Supreme Court ruling may undermine the strategic value of the Agreement on Reciprocal Trade (ART) for Indonesia, particularly its anticipated market access benefits for textiles and the electric vehicle battery sector. Additional tariffs and uncertainty over market access risk weakening Indonesia’s economic leverage and strategic autonomy. This paper assesses the implications of these developments for Indonesia’s national interests and outlines two policy options: discontinuing ratification on the grounds of a fundamental change in circumstances (rebus sic stantibus) or pursuing strategic renegotiation. Renegotiation would aim to strengthen Indonesia’s bargaining position, secure more balanced economic benefits, and preserve flexibility in relations with major global powers. This approach seeks to align trade cooperation with Indonesia’s economic priorities and policy sovereignty.
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