FYI.

This story is over 5 years old.

Politics

What's Pence Doing In Indonesia?

After the US put Indonesia on notice for a trade deficit, Vice President Pence is in Jakarta to discuss trade and security.
Photo by the Indonesia's Presidential Office.

US Vice President Mike Pence is currently in Indonesia on his Asian tour, sitting down with president Joko Widodo at Istana Merdeka. After mixed messages from the Trump administration, Indonesia is keen to see what lies ahead for their relationship with one of their oldest allies.

The meeting was cordial between Pence and Jokowi, they shared some tea in the veranda of the state palace. Pence praised Indonesia for their their dedication to moderate Islam, even though recent events have suggested a rise in extremism.

Advertisement

Both countries have much to gain from a positive meeting, Indonesia wants to be taken more seriously and the US is looking to engage rising global powers in an unstable region. Pence had a tour around Jakarta, visiting mosques and sharing an awkward lunch with the president to ensure the continuation of a relationship which flourished under the presidency of one-time Jakarta resident Barack Obama.

That special relationship might be in danger after US President Donald Trump signed an executive order that asked the government to investigate all nations they currently have a trade surplus with, Indonesia happens to be one of them.

Trumps unpredictable presidency and isolationist strategy of strengthening the US economy might be bad news for Indonesia, a nation which has benefited from trade with the US.

"What does it mean, 'America first'?" Indonesian Vice President Jusuf Kalla told Reuters. "I can say, too, 'Indonesia first' if you say 'America first'."

Trade was the biggest topic on the docket for Pence, and Indonesia has been looking for assurances from the mercurial administration that they will stick to their guns when it comes to trade deals.

"At this time of global economic uncertainty we are puzzled with the signal being sent from Washington," said Iman Pambagyo, the director general of international trade negotiation at Indonesia's Trade Ministry

Arif Sumantri Harahap, a lecturer at Prof. Dr. Moestopo University, believes increased competition is the source of the the trade imbalance between the US and Indonesia.

"Anti-dumping measures won't work in Indonesia, [when competing] against countries like China and Japan", Harahap said. "If were talking about the defense sector, if America still complains  about our human rights, things will remain gridlocked."