TEMPO.CO, Jakarta - U.S. President Donald Trump has officially reduced import tariffs on Indonesian products to 19 percent, down from the previous 32 percent. Trump announced the tariff reduction came after direct negotiations with Indonesian President Prabowo Subianto.
"This morning, I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto," Trump posted on Truth Social on Tuesday, July 15, 2025 (U.S. time).
In exchange for the tariff reduction, Trump stated that Indonesia agreed to purchase 50 Boeing aircraft, primarily from the 777 series.
Furthermore, the Indonesian government plans to import U.S. energy commodities valued at US$15billion, or approximately Rp240trillion, with an assumed exchange rate of Rp16,000 per US dollar, and U.S. agricultural products worth US$4.5 billion, or around Rp72 trillion.
"For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people... U.S. Exports to Indonesia will be Tariff and Non-Tariff Barrier Free," Trump declared.
On a separate occasion, Trump expressed his appreciation and respect for Prabowo following the trade agreement, referring to the Indonesian President as a "great figure."
"Indonesia is great, he is a great President, and we have made a terrific deal where they open up the entire country to trade with the United States," Trump said in a statement at Joint Base Andrews, U.S., on Tuesday, July 17, 2025, as quoted from the White House's YouTube account.
Meanwhile, President Prabowo shared a moment of his conversation with Trump on his Instagram account, stating they had a good discussion that led to mutually beneficial trade relations for both countries.
"President Trump extends his warm regards to the people of Indonesia," read a post on @prabowo's account on Wednesday, July 16, 2025.
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