Indonesia and US tariff deal result of 'extraordinary negotiations'

The United States' decision to impose a lower 19 percent tariff rate on Indonesian exports is a result of "extraordinary negotiations" between US President Donald Trump and Indonesian President Prabowo Subianto, Hasan Nasbi, head of the President Communication Office, told the local media.

Trump said Tuesday on Truth Social platform that Indonesia will pay a 19 percent tariff on goods exported to the US, while US exports to Indonesia are to be "Tariff and Non Tariff Barrier FREE".

This is lower than the 32 percent that Trump threatened in April and on July 7 to impose on Indonesia beginning from Aug 1.

"If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on the Tariff that Indonesia is paying," Trump was quoted by Antara News Agency as saying in his post.

Trump said that he has "finalized an important deal" after speaking with Prabowo. This landmark deal opens up Indonesia's "entire market to the United States for the first time in history", he added.

The post also announced that Indonesia has also committed to importing $15 billion in energy, $4.5 billion in agricultural products and 50 Boeing jets from the United States.

Prabowo said on his social media account on July 16 that he had "a very good call" with Trump.

"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 said.

Prabowo arrived in Jakarta on July 16 after a 15-day official tour to several countries, including Saudi Arabia, Brazil, Belgium and France.

Other details of the said agreement are yet to be unveiled.

Contact the writers at prime@chinadailyapac.com