President Donald Trump announced a new trade agreement with Indonesia, slashing a proposed 32% tariff on Indonesian goods to 19% and securing billions of dollars in commitments for U.S. energy, agriculture, and aviation sectors. The deal was finalized following direct talks with Indonesian President Prabowo Subianto.

Under the deal, Indonesia pledged to purchase $15 billion worth of American energy, $4.5 billion in agricultural goods, and 50 Boeing jets, including numerous 777 models. Trump celebrated the agreement as a historic opening for American businesses. “For the first time ever, our ranchers, farmers, and fishermen will have complete and total access to the Indonesian market of over 280 million people,” he stated.

Analysts in Jakarta, however, raised concerns about the lack of finalized details and the potential impact on local industries such as poultry and corn, which could struggle to compete with U.S. imports.

The agreement is the fourth major tariff-related announcement by Trump this year, following deals with Vietnam, the U.K., and China. In each case, Trump used tariff threats to secure trade concessions. Indonesia’s copper and other critical minerals may have played a role in Washington’s motivation, as Trump highlighted Indonesia’s “very powerful copper” during a Pennsylvania speech.

Regional Competition and Strategic Implications

Indonesian business leaders cautioned against considering Trump’s announcement as final, noting that other nations are still negotiating their terms. Observers warn the deal could shift Indonesia’s economic balance with China, its largest trading partner, raising broader strategic questions.

Shinta Kamdani, head of the Indonesian Employers Association, stressed the need to monitor ongoing talks, while others flagged potential risks for local producers exposed to U.S. competition.