US-Indonesia deal raises concern over trade balance

The latest United States-Indonesia trade agreement, which will allow duty-free US imports to Indonesia, is seen by analysts as pressuring the bilateral trade balance and weighing on the Indonesian economic outlook.

After almost a year of negotiations, the two countries finally sealed a trade deal during Indonesian President Prabowo Subianto’s state visit to the US.

Prabowo and US President Donald Trump signed an agreement on Thursday in which the US has agreed to keep its tariffs on Indonesian goods at 19 percent,…