Indonesian President Prabowo Subianto has welcomed a trade deal with the United States, hailing it as the beginning of a “new era of mutual benefit” between the two nations. The agreement, announced by US President Donald Trump, will see the US tariff rate on Indonesian goods reduced from 32 percent to 19 percent. According to Trump, Indonesia has agreed to buy $15 billion worth of US energy exports, $4.5 billion in US agricultural products, and 50 Boeing jets.
In a post on Instagram, President Prabowo Subianto expressed his satisfaction with the deal, saying, “I had a very good call with President Donald 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.” Prabowo’s presidential spokesman, Hasan Nasbi, described the agreement as the culmination of an “extraordinary effort” by Indonesia’s negotiating team, adding that the reduced tariff rate was a significant achievement.
The agreement is expected to boost trade between the two countries, with the US gaining greater access to Indonesia’s market. Trump stated that US exporters would have “full access to everything” and pay no tariffs, saying, “They are going to pay 19 percent, and we are going to pay nothing. I think it’s a good deal for both parties.” Indonesia ranked 24th among the US’ top trading partners in 2024, with two-way goods trade worth $38.3 billion and a US trade deficit of $17.9 billion.
President Prabowo’s administration has been focused on strengthening Indonesia’s economy and improving the lives of its citizens. In his inauguration speech, Prabowo vowed to eradicate corruption, poverty, and hunger, and to prioritize the interests of all Indonesians. The new administration has also launched several initiatives aimed at boosting economic growth, including a free nutritious meals program for schoolchildren and a plan to increase tax revenue to 14-16 percent of GDP.
The trade deal between Indonesia and the US is seen as a significant step towards strengthening economic ties between the two nations. As President Prabowo continues to engage with global leaders, including his recent visit to France and meeting with European Commission President Ursula von der Leyen, Indonesia is poised to play a more prominent role in regional and global economic affairs.