Wed Jul 16 09:07:31 UTC 2025: ## Indonesia Hails “New Era” as US Tariffs Slashed to 19%
**Jakarta, Indonesia** – Indonesian President Prabowo Subianto has lauded a new trade agreement with the United States, hailing it as the beginning of a “new era of mutual benefit” after President Donald Trump agreed to slash tariff rates on Indonesian goods from 32% to 19%.
The announcement follows a phone call between the two leaders, with President Prabowo expressing his optimism in a social media post. “Together, we agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit between our two great nations,” he wrote.
Presidential spokesman Hasan Nasbi described the agreement as the culmination of an “extraordinary effort” by Indonesian negotiators, explaining that the lower tariff rate represented significant progress.
While details remain limited, Trump initially announced the deal on Truth Social, stating that Indonesia has agreed to purchase $15 billion of US energy exports, $4.5 billion of US agricultural products, and 50 Boeing jets. He later added that US exporters would have “full access to everything” with a tariff rate of 0%, compared to Indonesia’s 19%.
“They are going to pay 19 percent, and we are going to pay nothing,” Trump stated at the White House, calling it a “good deal for both parties.”
In 2024, Indonesia was the 24th largest trading partner for the United States, with bilateral trade in goods amounting to $38.3 billion. The US currently holds a $17.9 billion trade deficit with Indonesia.
Further details on the agreement are expected to be released by President Prabowo upon his return from a state visit to France. The deal signals a potentially significant shift in trade relations between the two nations.
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