In a statement posted on social media, Prabowo confirmed he had spoken directly with U.S. President Donald Trump and agreed to deepen economic cooperation. “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,” he said. The announcement came as part of Prabowo’s ongoing diplomatic outreach, which includes a state visit to France.

According to Trump, Indonesia has committed to major U.S. purchases as part of the deal: $15 billion in energy exports, $4.5 billion in agricultural products, and an order of 50 Boeing aircraft. The U.S. president emphasized that while Indonesia’s tariff would fall to 19%, American exporters would pay “nothing,” claiming it as a victory for U.S. business.

Jakarta Hails Breakthrough Amid Trade Pressures

Indonesian presidential spokesman Hasan Nasbi described the agreement as the result of an “extraordinary effort” by the negotiating team, likening the reduction to “lowering the height of a fence” from 32 to 19. While details of the arrangement remain limited, Nasbi signaled that Prabowo would share more information following his return from Europe.

Despite lacking full transparency, the agreement is being framed domestically as a significant policy win for Indonesia’s trade diversification and diplomatic standing. With the U.S. ranking as Indonesia’s 24th-largest trading partner and a bilateral goods trade volume of $38.3 billion in 2024, the deal could reshape economic flows between the two countries.

Economic Implications And Regional Significance

The agreement comes amid a broader reshuffling of U.S. trade policy under Trump’s second term, which has seen new tariffs imposed on countries including Brazil, Iraq, and the Philippines. While some nations have faced increased trade barriers, Indonesia’s preferential treatment suggests a strategic alignment with Washington in an increasingly competitive Asia-Pacific environment.

With the U.S. running a $17.9 billion trade deficit with Indonesia in 2024, this deal could help balance bilateral expectations while reinforcing Prabowo’s image as a pragmatic and globally-minded leader. For Jakarta, the agreement not only promises tariff relief but may also offer greater stability in accessing U.S. markets amid global economic uncertainty.