The agreement requires ratification by Indonesia’s parliament before it can take effect. That adds another “layer of uncertainty,” said Mehu Sitepu, with the Washington-based strategic advisory firm The Asia Group.
Some provisions of the agreement are drawing criticism, including those that are seen as diluting Indonesia’s halal certification requirements in the mostly Muslim country of nearly 288 million, Southeast Asia’s most populous nation.
“Parliamentary approval could be an uphill battle and added uncertainty from the U.S. side may complicate things further,” Sitepu said.
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