A landmark trade agreement between the United States and Indonesia has been finalized, capping days of high-level negotiations and revising an earlier tariff threat.
President Donald Trump announced Tuesday that a previously planned 32% tariff on imports from Indonesia will instead be lowered to 19% under the terms of the new deal.
“They are going to pay 19% and we are going to pay nothing,” Trump said, according to the BBC. “We will have full access.” He also praised Indonesian President Prabowo Subianto as a “really great president, very popular, very strong, smart.”
In a post on Truth Social, Trump elaborated: “This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto. This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History.”
According to Trump, Indonesia has committed to purchasing significant volumes of American goods. “Indonesia has committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s,” he said.
“In addition, Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE,” Trump added, a claim that, consistent with past rhetoric, misrepresents tariffs as being paid by exporting countries rather than by importers.
Indonesia’s president confirmed the deal on Wednesday. The New York Times quotes Prabowo Subianto as calling Trump “quite a tough negotiator.” A representative for Prabowo told Reuters that the agreement followed “an extraordinary struggle by our negotiating team.”
In public remarks, Prabowo referred broadly to the structure of the agreement: “We need planes, and they want to sell. Boeing is quite good, and we’ll also continue to work with Airbus. … We also need things. For example, we still import fuel, gas, wheat, soybeans, and so on. And we managed to find common ground. … We also have our own position. This is our offer, and we simply can’t afford to buy more. But the key thing for me is that our workers are safe.”
According to Politico, U.S. trade with Indonesia totaled around $38 billion last year, less than 1% of America’s total international trade. Indonesia is the world’s 17th-largest economy and counts China as its biggest trade partner. Key Indonesian exports to the U.S. include machinery, palm oil, tires, and critical minerals.
Shongjog 