Indonesia’s leader has welcomed United States President Donald Trump’s move to slash tariffs for Southeast Asia’s biggest economy, hailing the beginning of a “new era of mutual benefit”.

Indonesian President Prabowo Subianto’s remarks on Wednesday came after Trump said he had sealed a trade deal with Jakarta under which his tariff rate would fall from 32 percent to 19 percent.

“I had a very good call with President Donald Trump,” Indonesian President Prabowo Subianto said in a post on Instagram on Wednesday.

“Together, we agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit between our two great nations. President Trump extends his warm regards to the people of Indonesia.”

Prabowo’s presidential spokesman, Hasan Nasbi, told a news conference that the agreement was the culmination of an “extraordinary effort” by Indonesia’s negotiating team.

“So if we use an analogy, there is a house that built a fence, and the fence was initially 32 for us. After negotiations, the fence could be lowered to 19,” Nasbi told local media in Jakarta.

“Yes, of course, this is progress that cannot be called small progress, nor can it be considered a minor achievement.”

Nasbi declined to elaborate on the details of the agreement beyond the lower tariff rate, saying Prabowo would provide more information upon returning from his state visit to France.

In his initial announcement of the deal on Truth Social on Tuesday, Trump said Indonesia had agreed to buy $15bn of US energy exports, $4.5bn of US agricultural products, and 50 Boeing jets.

Advertisement

Trump said later on Tuesday that US exporters would have “full access to everything” and pay no tariffs.

“They are going to pay 19 percent, and we are going to pay nothing,” Trump told reporters at the White House.

“I think it’s a good deal for both parties.”

Indonesia ranked 24th among the US’ top trading partners in 2024, with two-way goods trade worth $38.3bn, according to the Office of the US Trade Representative.

The US had a $17.9bn trade deficit with Indonesia the same year, according to the trade office.