The United States has demanded that Indonesia purchase American-made maritime surveillance drones for waters near the South China Sea as a condition for reducing tariffs to 19 percent. This requirement, detailed in a government document reviewed by The Straits Times, extends trade talks into geopolitical matters. The deal is expected to be finalized in January 2026 during President Prabowo Subianto's visit to meet President Trump.
The United States government has required Indonesia to buy US-produced maritime surveillance drones for deployment in waters near the South China Sea. This condition is tied to a proposed reduction in import tariffs on Indonesian goods to 19 percent, down from an earlier threat of 32 percent. President Donald John Trump has offered this concession as part of finalizing the Agreement on Reciprocal Trade to address the US trade deficit with Indonesia.
The two nations are in the closing stages of negotiations. The final agreement is slated for signing in January 2026, coinciding with Indonesian President Prabowo Subianto's visit to the US to meet President Trump. A government document dated October 10, 2025, reviewed by The Straits Times, indicates that Washington is pressing Indonesia to realign its stance on the South China Sea. Observers have expressed surprise at this demand, viewing it as straying beyond pure trade concerns.
"The US requests Indonesia's commitment to adjust its South China Sea policy to protect its national sovereignty and jurisdictional rights, ensure alignment with international law, and enhance maritime domain awareness and regional cooperation," the document states. This move appears aimed at bolstering US influence in the region, though Indonesia has yet to issue an official response.
