Crisis Management for a Conflict with North Korea

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Trump demands on mining and China snarl U.S.-Indonesia trade deal

Japan Times | English | News | Dec. 12, 2025 | Geopolitical Conflict and Disputes

Indonesia is resisting demands from the U.S. trade deal that it fears would limit its sovereignty, particularly regarding critical minerals and energy sectors. These demands pose risks to Indonesia’s relationships with China and Russia, key foreign partners for the country.

Since reaching a trade framework in July, which set a 19% tariff rate, the Trump administration has pressured Jakarta to accept terms that could constrain its ties with China, one of its largest foreign investors. This pressure has created friction between the two nations and threatens to derail the existing agreement.

U.S. officials have accused Indonesia of retracting on previous commitments, raising concerns that the trade deal may collapse. The situation remains tense, with unresolved issues around strategic sectors and geopolitical relationships influencing the ongoing negotiations.

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