JAKARTA, July 16 (Reuters): Indonesia's president said US counterpart Donald Trump was a "tough negotiator" after the two countries reached a trade deal that led to a reduction of proposed tariff rates to 19% from 32%.
The deal is among only a handful reached so far by the Trump administration ahead of an August 1 deadline for negotiations, but no details were immediately provided by Indonesia, Southeast Asia's largest economy and a member of the G20.
Trump said Indonesia had committed to purchasing 50 Boeing jets, $15 billion in U.S. energy supplies, and $4.5 billion in US agricultural products.
"We've agreed from 32%, if I'm not mistaken, lowered to 19% ... I was still negotiating, but, I must say, he's a pretty tough negotiator," Indonesia President Prabowo Subianto told journalists on Wednesday after a phone call with Trump.
Prabowo, who was returning from overseas visits, including Brazil for the BRICS conference, said he had spoken to Trump. He added, while he understood the United States' points of view in the talks: "We've given our offer, we cannot give more."
Trump's comments outlined an Indonesia deal similar to a preliminary pact struck recently with Vietnam, with no levies on U.S. exports to Indonesia. It also included a penalty rate for so-called transshipments of goods from China via Indonesia.
Indonesia - the world's fourth-largest country by population - ran a goods trade surplus of $17.9 billion with the United States in 2024, according to the U.S. Trade Representative.
"This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs," Hasan Nasbi, the Indonesian president's spokesperson, told reporters earlier.
Nasbi said Indonesia's tariff rate was much lower than other countries in Southeast Asia.
The Jakarta stock index (.JKSE) rose as much as 0.8% on Wednesday after the deal, which Indonesia's central bank said would provide a positive catalyst for economic activities. The JKSE is up 10% since early April.
