Rare earth may help Indonesia persuade US to lower reciprocal tariffs, but experts remain sceptical

Indonesia’s rare earth industry is relatively nascent and underdeveloped, but it has potential beyond its current stated reserve, according to observers. - Photo: Reuters

JAKARTA: Even as Indonesia’s lead negotiator intensified lobbying efforts for a lowering of America’s reciprocal tariffs this week, analysts remain sceptical that talks will make headway even if Jakarta attempts to leverage the nation’s rich mineral resources as a bargaining chip.

They said the US’ apparently adamant rejections to Indonesia’s proposals to balance trade were politically motivated, hence any offers, even those that offer economic benefit, will not make them budge.