Indonesia Strikes Deal to Reduce US Tariff to 19%

President Prabowo Subianto speaks with US President Donald Trump in a telephone call on Tuesday (07/15). (Photo by: Exclusive)

President Prabowo Subianto speaks with US President Donald Trump in a telephone call on Tuesday (07/15). (Photo by: Exclusive)

President Prabowo Subianto and President of the United States Donald Trump reached a trade deal on Tuesday (07/15) after tough negotiations, resulting in a significant tariff reduction on Indonesia’s exports from 32 percent to 19 percent.

“In a very serious yet warm and amicable conversation that lasted for almost 17 minutes, the two leaders discussed several issues, especially the United States’ tariff policy,” Cabinet Secretary Teddy Indra Wijaya said in a written statement.

Teddy further stated that, after a lengthy negotiation, the two leaders reached an agreement during the phone call that took place while President Prabowo was on his overseas working visit to Europe.

“Following a tough negotiation process and recognizing each of the two states’ interests, they agreed to lower the import tariff from 32 percent to 19 percent on Indonesian products,” he said.

According to Teddy, the US tariff on Indonesia is among the lowest in Asia, with President Prabowo actively involved in negotiations to defend national interests.

“After many negotiation efforts by the Indonesian Government, President Prabowo personally negotiated the tariff reduction with President Donald Trump, who is a tough negotiator. The Head of State continued negotiating until reaching an agreement,” he said.

Teddy also noted that the trade deal would boost Indonesia’s position in global trade, especially since the agreement was made soon after Indonesia and the European Union reached a free trade deal that would increase market access for Indonesian goods in Europe.

“The agreement reached during this negotiation is good news that came following a free trade agreement between Indonesia and the European Union,” he said, adding that the negotiation results would be immediately followed up by Coordinating Minister for Economic Affairs Airlangga Hartarto. (BPMI of Presidential Secretariat) (DH/TM)