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Toward a US - Indonesia Free Trade Agreement: Issues and Opportunities


  • Gary Cylde Hufbauer

    (Peterson Institute for International Economics)

  • Sjamsu Rahardja


Indonesia is the largest Muslim country in the world. Would a free trade agreement (FTA) with the country be beneficial both economically and politically to the United States? What kind of benefit could Indonesia expect? This book presents a case for improved trade relations between Indonesia and the United States and recommends advancing exploratory talks toward a US-Indonesia FTA. The authors present a detailed study of the stakes involved in the various areas of the proposed negotiation and estimate the FTA's potential for trade creation, trade diversion, and welfare under different scenarios.

Suggested Citation

  • Gary Cylde Hufbauer & Sjamsu Rahardja, 2007. "Toward a US - Indonesia Free Trade Agreement: Issues and Opportunities," Peterson Institute Press: Policy Analyses in International Economics, Peterson Institute for International Economics, number pa83, October.
  • Handle: RePEc:iie:piiepa:pa83 Note: Policy Analyses in International Economics 83

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