US drone demand puts Indonesia’s strategic balance to the test

According to a leaked document, Washington proposed lowering tariffs if Indonesia bought US-made drones and publicly announced the purchase

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Indonesian President Prabowo Subianto and his US counterpart Donald Trump shake hands during a world leaders’ summit in Egypt in October 2025. Photo: Reuters

Published: 5:32pm, 20 Jan 2026Updated: 5:53pm, 20 Jan 2026

Indonesia’s efforts to deepen trade with the United States while maintaining close economic ties with China are being tested after a report revealed Washington had linked lower tariffs to the purchase of US-made maritime surveillance drones for use near the South China Sea.

The development has highlighted the balancing act facing Jakarta, which analysts say is seeking to preserve strategic flexibility as trade negotiations with Washington increasingly intersect with security and geopolitical considerations.

The assessment follows revelations based on a leaked Indonesian government document, reported on by The Straits Times, which showed Washington had proposed cutting its so-called reciprocal tariff on Indonesian goods if Jakarta agreed to buy US unmanned aerial systems and publicly announce the procurement.

The reported request comes as Indonesia and the US are still negotiating a trade deal that would lower the tariff rate from a threatened 32 to 19 per cent, with talks progressing more slowly than expected. Jakarta had hoped to conclude negotiations last year.

Workers sort sacks of rice at a warehouse in Aceh province. Indonesia and the US are still negotiating a trade deal that would lower the tariff rate from a threatened 32 per cent to 19 per cent. Photo: AFP

Indonesia’s Ministry of Defence responded to the report by saying that it had not been informed of such a request.

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US drone demand puts Indonesia’s strategic balance to the test

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}According to a leaked document, Washington proposed lowering tariffs if Indonesia bought US-made drones and publicly announced the purchase

According to a leaked document, Washington proposed lowering tariffs if Indonesia bought US-made drones and publicly announced the purchase