Trump says Indonesia trade deal features 19% tariff; Jakarta yet to confirm

President Donald Trump announced a preliminary trade deal with Indonesia on Tuesday, stating it sets a 19% tariff on Indonesian exports to the United States. Trump claimed the deal grants the US access to the Indonesian market and emphasized that Indonesia would pay the 19% tariff while the US would pay no tariffs on its exports to Indonesia.

Trump later elaborated on Truth Social, asserting that as part of the agreement, Indonesia committed to purchasing $15 billion in U.S. energy, $4.5 billion in American agricultural products, and 50 Boeing jets, many being 777s. This aligns with recent reports of Indonesian airline Garuda considering an order for 50-75 Boeing aircraft.

It remains unclear if Jakarta has approved these specific terms, as the Indonesian Embassy did not immediately respond to requests for comment. Commerce Secretary Howard Lutnick suggested the deal involves Indonesia dropping its tariffs on U.S. goods. The White House also did not provide additional details on the purported agreement.

The announced 19% tariff represents a reduction from the 32% duty Trump had threatened to impose on Indonesian imports just the previous week. Trump attributed the deal to direct negotiations with Indonesian President Prabowo Subianto, whom he praised.

This announcement follows a similar pattern to Trump's July 2nd claim of a trade deal with Vietnam, which included a 20% tariff. Indonesia is a significant U.S. trade partner, with bilateral goods trade exceeding $38 billion in 2024 and a U.S. trade deficit of $17.9 billion in 2023.