Indonesia Denies US Drone Talks, Tariff Deal Hinges on Prabowo-Trump's Schedule
Jakarta. Senior minister Airlangga Hartarto recently denied that tariff talks with the US had involved some terms related to drone purchases, while saying that the document signing hinges on the leaders’ availability.
The Indonesia-US tariff negotiations are nearing the finish line. However, the Singapore-based daily Straits Times reported that Jakarta had rejected demands to buy US-made drones for surveillance in waters near the South China Sea. This strategic waterway is abundant in oil, natural gas, and fish. The waterbody is also of immense importance to Washington’s main rival, China, and has put a strain on Beijing’s relations with ASEAN members. The Jakarta Globe asked Airlangga — who has been helming the negotiations — if there were indeed provisions related to US drones.
“No, there is no such thing,” Airlangga said in a doorstep interview in his office on Thursday.
According to the original schedule, both sides would spend the second week of January on the “legal scrubbing” process to make sure the text is legally sound.
President Prabowo Subianto was expected to fly to Washington by the end of the month for the signing. He did not stop by the White House on his recent foreign trip. Prabowo did interact with US President Donald Trump in Davos last week during the launch of the Board of Peace. This is the international body spearheaded by Trump to oversee Gaza reconstruction, of which Jakarta is a founding member, much to the dismay of many Indonesians.
“It’s because we couldn’t arrange the time. But our leaders met in Davos. The fact that they met is already of importance,” Airlangga commented on the postponement.
“But no, they discussed other matters [besides tariffs],” the minister said, alluding to the peace board.
Airlangga confirmed that Prabowo would sign the document in Washington. Asked if this can happen in February, Airlangga said: “That would depend on Washington’s schedule as well.”
Prabowo has only visited the White House once as president so far, with the first trip taking place in November 2024 when Trump’s predecessor Joe Biden was still in power. The US has agreed to slash the reciprocal tariffs on Indonesian goods from 32% to 19%, thanks to a combination of import tax concessions and multi-billion-dollar purchase commitments. Last November, grocery price hikes prompted Trump to free a range of food imports, including cocoa and coffee, from his reciprocal tariffs. In late December, Airlangga announced a new arrangement that grants zero tariff for US-bound Indonesian palm oil.
Earlier that day, Airlangga’s aide Susiwijono Moegiarso claimed to the press that the upcoming deal would have “a nice surprise”. He refused to disclose more details, except that it would affect key export sectors.
Trade Ministry data showed that Indonesia’s surplus with the US reached $16.5 billion in January-November 2025, beating 2024’s figures of nearly $13 billion. Indonesia’s top exports to the US market last year included: electrical machinery and equipment ($5.5 billion), knitted/crocheted apparel ($2.5 billion); footwear ($2.2 billion). The sweeping tariffs all started with Trump’s intention to rebalance trade.
Reports of drone demand did not come as a surprise, as Washington has been keeping a close watch on the South China Sea.
Just recently, the US military sailed together with its Philippine counterpart as part of joint drills at a disputed shoal in the waters. Beijing has claimed sovereignty over 90% of the South China Sea, sparking territorial disputes with ASEAN nations Vietnam, the Philippines, Malaysia, and Brunei Darussalam. Jakarta has been pushing for the completion of a so-called “code of conduct”: a set of defined rules on how to behave in the contested waterway, which carries a third of global shipping.
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