An Increasingly Colonial Agreement
(Translated)
The News:
US President Donald Trump officially reduced tariffs on Indonesian products from 32% to 19%. This agreement came after rapid bilateral negotiations between Trump and Indonesian President Prabowo Subianto. The Indonesian President announced the results of his contacts with Trump regarding the reduction of tariffs on Indonesian exports to America on July 16, 2025, saying: "I spoke with President Donald Trump, and thank God, it was very difficult. Finally, we reached an agreement. We also understand their interests, and they understand our interests, and we have now agreed to reduce tariffs from 32% to 19%," adding: "We have studied everything, discussed everything, and studied the matter well. What matters to me is my people, and what is important is to protect our workers," and continued: "Finally, there is a consensus between the interests of both parties. We also need, for example, to continue importing fuel, gas, wheat, soybeans, and others. Thus, we can finally find a meeting point."
Comment:
1. The tariff agreement between Indonesia and the United States is not a victory as some observers claim, but an injustice, as Indonesia is subject to a 19% tariff, while the United States is subject to a zero percent tariff. This clearly shows America's injustice and arrogance towards Indonesia. Unfortunately, this is often considered a victory.
2. Trump wrote in a post on Truth Social on Tuesday, July 15, 2025: "Indonesia has agreed to purchase $15 billion worth of energy, $4.5 billion worth of agricultural products, 50 Boeing 777 aircraft, and provide full access to the Indonesian market for American farmers and fishermen." This illustrates that the trade agreement between Indonesia and America places Indonesia in an unbalanced position, clearly paving the way for American products from the agriculture, fisheries, automotive, and energy sectors to dominate the local market and undermine the competitiveness of local products. As a result, when imported goods become cheaper due to tariff-free trade, local companies will face significant pressure, and the space for local manufacturing will shrink. The influx of imported goods has the potential to weaken the local industry, especially in sectors that do not yet have full competitiveness. This pressure could lead to decreased production, layoffs, and even signs of early manufacturing decline. Under these circumstances, the so-called popular support is expected to be reduced. As a result, America will increasingly dominate the Indonesian market.
3. Not only that, but this agreement burdens Indonesia with huge purchase obligations that resemble unilateral obligations, rather than mutually beneficial trade transactions. For example, a $15 billion commitment to purchase energy from America could displace domestic energy sources or alternatives from other partner countries. On the other hand, $4.5 billion worth of imports of agricultural products, such as soybeans, corn, and beef, could erode the income of local farmers, who live on limited support. Farmers will suffer further shortages. Furthermore, the purchase of 50 Boeing aircraft raises fundamental questions: Is this a genuine part of a transportation sector modernization strategy, or will it burden the state budget and its airlines? Therefore, this agreement is not just a trade agreement, but a unilateral purchase package that undermines the foundations of Indonesia's economic independence. In this context, Indonesia is a passive consumer market, rather than an equal and sovereign trading partner. This means that the agreement is an increasingly colonial agreement. This is contrary to Islamic law, because Allah Almighty says: ﴿And Allah will never give the disbelievers a way [of authority] over the believers﴾.
Written for the Central Media Office of Hizb ut-Tahrir Radio
Muhammad Rahmat Kurnia – Indonesia