US trade deal: Indonesia to open market access

Jakarta (ANTARA) - United States President Donald Trump announced on Wednesday that the newest trade deal with Indonesia encompasses the latter's commitment to open its market to the US and make large-scale purchases of US commodities.

"This landmark Deal opens up Indonesia's ENTIRE MARKET to the United States for the first time in history," Trump wrote on Truth Social.

The US president stated that he finalized the deal after a conversation "with their Highly Respected President Prabowo Subianto." In his earlier post on Truth Social, Trump announced that "a great deal" has been reached with Indonesia, though he did share specifics.

According to Trump, the agreement requires Indonesia to purchase US$15 billion worth of US energy products and US$4.5 billion of US agricultural goods.

"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," he emphasized.

Trump also said Indonesia plans to purchase 50 Boeing aircraft, mostly Boeing 777 passenger jets, but did not specify which Indonesian entities would be the buyers.

Meanwhile, the US president stated that a 19-percent tariff will be imposed on Indonesian goods imported into the US, while US exports to Indonesia will be exempt from tariffs and non-tariff barriers.

"If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on the Tariff that Indonesia is paying," he added.

Trump concluded by thanking the Indonesian people for their "friendship and commitment to balancing our Trade Deficit."

Before this latest announcement, Trump had insisted on maintaining the 32 percent tariff, even as both countries engaged in intensive negotiations. In a July 7 letter to President Prabowo from the White House, Trump reaffirmed his position.

However, following a meeting between Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto and US officials -- including the Secretary of Commerce and the Trade Representative -- on July 9, Washington agreed to delay implementation of the tariffs for three weeks to allow further discussions.