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Indonesia says no to US demand to buy American drones, but agrees to other terms in trade talks

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At the launch of the Board of Peace in Davos, Mr Trump shook Prabowo’s hand and was seen patting him on the back as a gesture of camaraderie.

At the launch of the Board of Peace in Davos, Switzerland, on Jan 22, US President Donald Trump shook his Indonesian counterpart Prabowo Subianto’s hand.

PHOTO: AFP

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  • Indonesia and the US are finalising a trade deal to lower US tariffs from 32% to 19%. Indonesia will ease curbs on US auto imports and remove barriers for US tech and medical equipment.
  • Indonesia will import more fuel from the US and support American EV industries. However, Indonesia rejected US demands to change its South China Sea policy and buy US drones.
  • Discussions continue, focusing on final wording and administrative issues.

AI generated

Indonesia has agreed to a significant number of terms demanded by the US in their trade talks, 

including a plan to import fuel from the US instead of Singapore

, The Straits Times has learnt.

But Indonesia has rejected provisions that would violate its Constitution, including demands for it to buy US-made drones for surveillance in waters near the South China Sea, two senior government officials have told ST on condition of anonymity.

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