“This deal respects the sovereignty of both countries,” Airlangga said during an online news conference, describing the deal as a “win-win” for both countries. Investor confidence in Indonesia could improve if Jakarta uses the US deal as a springboard for further reform, CSIS Indonesia executive director Yose Rizal Damuri said. Under the deal, textile products from Indonesia would be subject to zero tariffs under a quota mechanism that is still to be discussed. Under the agreement, Indonesia would implement restrictions on “excess production” by foreign-owned mineral processing facilities by ensuring production conforms to Indonesian mining quotas. Earlier this week, Indonesian and US companies signed deals worth US$38.4 billion.
