- The Indonesian financial market has shown little reaction to the stalled US-Indonesia trade talks, as the announcement was preceded by yet another extension of the ‘reciprocal’ tariff implementation deadline.
- The inelastic demand for key Indonesian exports may help cushion the decline in US demand, although exporters of more elastic goods appear to be facing increasing competition in the US market.
- The breakthrough in the IEU-CEPA negotiations provides a lifeline for the domestic manufacturing sector, given the similar demand profiles of European and American consumers.
