The United States and Indonesia have reached a trade agreement of a reduced 19% tariff on Indonesian goods entering the U.S., along with major purchase commitments by Indonesia in American energy, agriculture, and aerospace sectors, U.S. President Donald Trump announced this week. 

In a series of posts on his Truth Social platform, President Trump stated that Indonesian exports to the U.S. will be subject to a 19% tariff, down from the 32% rate he had previously threatened. This development follows extensive bilateral discussions aimed at avoiding steeper U.S. import levies, originally scheduled to take effect on August 1. 

“Indonesia will pay the United States a 19% Tariff on all Goods they export to us,” Trump wrote, describing the agreement as a “landmark” deal. 

According to Trump, Indonesia has agreed to purchase USD 15 billion in U.S. energy products, USD 4.5 billion in agricultural goods, and 50 Boeing aircraft, most of them Boeing 777 passenger jets. Specific buyers or delivery timelines for the aircraft were not disclosed. 

Trump emphasized that under the deal, U.S. exports to Indonesia will face no tariffs or non-tariff barriers, providing what he called “full access” for American products to the Indonesian market.  

"They are going to pay 19% and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said, as quoted by Reuters. 

The agreement also includes provisions addressing transshipped goods—products routed through Indonesia from countries facing higher U.S. tariffs. These items will also be subject to the 19% rate. 

The announcement follows ongoing talks between senior officials. On July 7, President Trump sent a letter to Indonesian President Prabowo Subianto, reaffirming his intention to impose a 32% tariff. However, after a July 9 meeting in Washington between Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and U.S. officials, including the Secretary of Commerce and the U.S. Trade Representative, the tariff implementation date was delayed by three weeks to allow further negotiation. 

In a separate post, Trump called the pact a “great deal for everybody" and concluded by thanking the Indonesian people for their "friendship and commitment to balancing our Trade Deficit." 

Indonesia’s former Vice Minister of Foreign Affairs and former Ambassador of Indonesia to the United States, Dino Patti Djalal, stated that government insiders had indicated they were happy with the new deal, as reported The Jakarta Post. 

Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message that, "We are preparing a joint statement between U.S. and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon."