JAKARTA: Indonesia said on Wednesday it had reached a trade deal with the United States after an “extraordinary struggle” in negotiations which resulted in a reduction of proposed U.S. tariff rates on Indonesian goods to 19% from 32%.
U.S. President Donald Trump on Tuesday said a deal had been struck after he spoke to Indonesian President Prabowo Subianto. The deal is among only a handful reached so far by the Trump administration ahead of an August 1 deadline for negotiations.
“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 on Wednesday.
Nasbi said Prabowo had also negotiated directly with Trump over the phone, without giving further details. He said Prabowo would hold a press conference to give additional details upon landing back in Indonesia after a foreign trip later on Wednesday.
He called the deal a “meeting point” between the two governments, and said Indonesia’s tariff rate was much lower than other countries in South East Asia.
Indonesia’s stock index rose as much as 0.7% on Wednesday after the deal, which some analysts said would provide a positive catalyst for economic activities. – Reuters
