MARY LOUISE KELLY, HOST:
President Trump announced new trade deals with Japan and the Philippines yesterday. The details of a trade framework with Indonesia were also announced with great fanfare. But inside the country, the reaction is not as enthusiastic. Sherisse Pham reports.
SHERISSE PHAM, BYLINE: President Trump and his counterpart, Indonesian President Prabowo Subianto, say it's a great deal for everybody. But Indonesian businesses aren't so convinced. For one thing, the U.S. will maintain 19% tariffs on Indonesian goods while most American goods face 0% tariffs coming into Indonesia. And this despite the fact that Indonesia is a developing country with an economy that's a fraction the size of the U.S.'s.
HARRY BASKORO: This wasn't a balanced agreement. It was already one-sided. Now we're seeing it all access opened.
PHAM: Harry Baskoro, former deputy director at the central bank of Indonesia. He says the Southeast Asian nation made steep concessions on things like digital trade and big purchases of U.S. goods. Some manufacturers worry the tariffs could actually be higher. Trump has threatened BRICS members with an additional 10% tariff. BRICS is a group of major emerging economies of which Indonesia is a member.
ANDREAS WANGSANEGARA: Yeah, I have a bit of a worry about this.
PHAM: Andreas Wangsanegara is the director of Pudak Scientific, a company that makes aerospace parts for clients like Raytheon, a key supplier for Boeing. Wangsanegara said despite the continued tariff uncertainty, he hasn't seen a drop in demand from the U.S. But he's cautious about expanding business there.
WANGSANEGARA: The U.S. is growing. But actually, I still have the other markets, like in Europe and the U.K. So I still pushing on the Europe and the U.K. while being cautious with the U.S. market.
PHAM: Other industries may also pivot to more stable markets. Michael Sung is the director of Ever Shine, a textile company in Jakarta. Sung was more interested in a trade deal Indonesia signed this month with Europe eliminating tariffs on most Indonesian exports to the EU.
MICHAEL SUNG: So basically, Indonesia to Europe will be at 0% tax now. So that opens up a lot to the European market. So there might be a shift for Indonesian investors to actually want to export to Europe instead of America.
PHAM: Baskoro, the former central banker, is skeptical about how long the U.S.-Indonesia trade deal will even last. He likens dealing with Trump to dealing with local food vendors.
BASKORO: It's more of a truce or a ceasefire, but at a local Asian street vendor, because it's spicy, temporary. And it's subject to flare-ups.
PHAM: The trade deal with Indonesia is expected to go into effect on August 1.
For NPR News, I'm Sherisse Pham in Hong Kong.
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