The Way Indonesia Deals with US, EU Could Set Bad Precedent for Countries Looking to Forge Similar Deals
INDONESIA, JUL 16 – The deal reduces Indonesian tariffs on U.S. goods to 19% and includes $19.5 billion in purchase commitments, benefiting U.S. agriculture, energy, and aerospace sectors, officials said.
- On July 15, 2025 in Jakarta, Indonesia and the United States reached a compromise: the threatened 32% tariff on Indonesian exports will now be capped at 19% in exchange for Indonesia's commitments to purchase US energy, agricultural goods, and 50 Boeing aircraft.
- Under the deal, Prabowo committed to purchase US$15 billion in energy, US$4.5 billion in agricultural goods, and 50 Boeing jets, with Trump said: `US exports to Indonesia will face a cap on tariffs and non-tariff barriers.`
- The market gained momentum as Indonesia’s stock index rose 0.7% on Wednesday, Matt Simpson said, `Authorities are pleased because they received favorable terms.`
- Mirdal Gonarto said `The agreement paves the way for easier interest rate reductions`, while Natixis cautioned that the economy could still feel US–China tariff repercussions.
- Beyond immediate terms, execution timelines are undefined while Indonesia faces global market uncertainties.
24 Articles
24 Articles
Indonesia to Continue Talks on Jets, Minerals After Tariffs Deal
Indonesia will keep talking with the US on sectoral tariffs, jet purchases and critical minerals after securing a 19% baseline tariff rate on exports to the world’s largest economy, a government adviser said Thursday.
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The way Indonesia deals with US, EU could set bad precedent for countries looking to forge similar deals
Indonesia’s recent agreements with the Western superpower and the European bloc could set the path for other nations seeking similar arrangements. But experts warn against potential pitfalls and sacrificing domestic interests.
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