Indonesia and the United States have reached a trade agreement that lowers a proposed tariff rate to 19% from 32%.
The deal was confirmed following a phone call between Indonesian President Prabowo Subianto and U.S. President Donald Trump.
Prabowo said he had negotiated directly with Trump and described him as a tough negotiator. He said the talks led to a compromise, with Indonesia unable to offer more beyond what was already proposed.
Trump said the agreement includes Indonesia’s commitment to buy 50 Boeing jets, $15 billion in U.S. energy supplies, and $4.5 billion in U.S. agricultural goods.
The deal is one of the few the Trump administration has reached ahead of a negotiation deadline on August 1. It follows a similar agreement recently made with Vietnam and includes measures against transshipments of Chinese goods through Indonesia.
Indonesia had a $17.9 billion goods trade surplus with the United States in 2024, according to U.S. government data. The new agreement removes tariffs on U.S. exports to Indonesia and introduces a penalty for rerouting goods from China.
Hasan Nasbi, spokesperson for the Indonesian president, said the reduced tariff rate is lower than in other Southeast Asian countries. Indonesia’s central bank said the agreement will support exports, financial stability, and economic growth.
Following the announcement, Indonesia’s Jakarta stock index rose 0.8% on Wednesday. The central bank also cut interest rates the same day, saying the deal added certainty for markets and created room for supportive monetary policy.
