Indonesia has reached a trade agreement with the United States that lowers proposed U.S. tariffs on Indonesian exports from 32% to 19%, following direct negotiations between Presidents Prabowo Subianto and Donald Trump. The deal, which includes major purchase commitments, is seen as a strategic win.
President Prabowo Subianto reportedly spoke directly with President Trump to finalise the terms, which include Indonesia's commitment to buy 50 Boeing aircraft and billions in U.S. energy and agricultural products. The deal also mirrors elements of a recent U.S.-Vietnam agreement, including provisions against Chinese transshipments.
Analysts say while non-oil sectors such as textiles may face some pressure, energy and agriculture will benefit, and the reduced tariffs could boost investor confidence and ease monetary policy conditions. Indonesian markets responded positively to the announcement, with the Jakarta stock index rising by 0.7%.
“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President,” Trump said on social media, referring to Indonesian President Prabowo Subianto.
In a follow-up post, Trump detailed key terms of the agreement, saying Jakarta had agreed to buy $15 billion worth of U.S. energy, $4.5 billion in American agricultural products, and 50 Boeing aircraft.
He added that U.S. exports would face no tariff or non-tariff barriers, describing it as “complete and total access” for American farmers, ranchers and fishermen to Indonesia’s 280 million-strong market.
However, Indonesians on Wednesday questioned the fairness of their country’s trade deal with the U.S.
"It's not fair that we (who export to the U.S.) are charged 19% while they (the U.S.) are asked for zero per cent, in my opinion this is not fair at all,” said Mulyadi, an employee for a securities firm.
Indonesia said the trade deal with the United States was reached after an "extraordinary struggle" in negotiations.
The announcement comes just ahead of the 1 August deadline for countries to finalise trade deals with Washington or face increased tariffs. Originally set for 9 July, the deadline was extended by The White House to allow more time for talks.
Trump’s trade advisor Peter Navarro had pledged a goal of “90 deals in 90 days,” though only the UK and Vietnam have concluded interim agreements so far — and many details remain unresolved.
Russia published addresses of manufacturers allegedly producing drones or components for Ukraine on Wednesday (15 Apr...
U.S. President Donald Trump says Israeli and Lebanese leaders have agreed to a 10-day ceasefire that includes Hezbollah, raising cautious hopes of ...
The U.S. House of Representatives has narrowly voted to block an effort to rein in Donald Trump’s authority to conduct military operations ag...
Georgia’s parliament has approved fast-tracked amendments to the Law on Grants, introducing new exemptions and ...
RRussian Foreign Minister Sergey Lavrov’s visit to Beijing is placing China’s diplomacy under closer scrutiny, as it balances its partn...
Russia published addresses of manufacturers allegedly producing drones or components for Ukraine on Wednesday (15 April), warning European countries against plans to step up UAV supplies to Kyiv.
The U.S. House of Representatives has narrowly voted to block an effort to rein in Donald Trump’s authority to conduct military operations against Iran.
Georgia’s parliament has approved fast-tracked amendments to the Law on Grants, introducing new exemptions and expanding the state’s role in defining and overseeing foreign funding.
RRussian Foreign Minister Sergey Lavrov’s visit to Beijing is placing China’s diplomacy under closer scrutiny, as it balances its partnership with Moscow against strained relations with the U.S.
Dubai’s most iconic hotel, the Burj Al Arab, is set to close for the first time since opening in 1999 as it begins an extensive 18-month refurbishment aimed at preserving its status as a global symbol of luxury.
The U.S. and Iran could resume peace talks over the next couple of days, U.S. President Donald Trump has said. Talks between Israel and Lebanon were held in Washington yesterday. Fuel prices have dropped below $100 a barrel. U.S. blockade on Iranian ports completes first day.
Azerbaijan and Russia have announced a formal settlement over the 2024 crash of an Azerbaijan Airlines (AZAL) Embraer 190 near Aktau, confirming that all outstanding issues, including compensation, have been resolved.
U.S. President Donald Trump said on Thursday that there was a "good chance" of a peace deal between Lebanon and Israel happening soon, after he announced a 10-day ceasefire between the two countries.
Türkiye is reeling after a second school shooting in as many days, after a 14-year-old student killed nine people - eight pupils and one teacher - and wounded 13 others at a middle school in the south-eastern province of Kahramanmaraş on Wednesday, officials said.
The U.S. House of Representatives has narrowly voted to block an effort to rein in Donald Trump’s authority to conduct military operations against Iran.
RRussian Foreign Minister Sergey Lavrov’s visit to Beijing is placing China’s diplomacy under closer scrutiny, as it balances its partnership with Moscow against strained relations with the U.S.
U.S. President Donald Trump says Israeli and Lebanese leaders have agreed to a 10-day ceasefire that includes Hezbollah, raising cautious hopes of a pause in hostilities after weeks of escalating tensions.
Russia published addresses of manufacturers allegedly producing drones or components for Ukraine on Wednesday (15 April), warning European countries against plans to step up UAV supplies to Kyiv.
Britain and France will co-host virtual talks on Friday (17 April) to ease tensions and restore safe passage through the Strait of Hormuz, one of the world’s most critical shipping routes.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment