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June 2007
• 214 pp. ISBN paper 978-0-88132-402-0 • $12.57
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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.
