TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto described U.S. President Donald Trump as a "tough negotiator" during discussions about import tariffs. Prabowo shared this impression after a phone conversation with Trump.
Prabowo stated that the import tariff negotiations with Trump were challenging. Ultimately, both leaders understood each other's interests and reached an agreement. Even though Trump lowered Indonesia's import tariffs from 32 percent to 19 percent, Prabowo continued to push for more favorable terms.
"I still negotiate; I say he is also a tough negotiator," Prabowo remarked at Halim Perdanakusumah Air Force Base in Jakarta on Wednesday, July 16, 2025.
As a result of the negotiations, import tariffs for American products entering Indonesia were set at 0 percent, while Indonesia's import tariff to the U.S. stands at 19 percent. Prabowo affirmed that the government has calculated the impact of all negotiation outcomes.
"We also consider what is important to me, which is my people," he said. "We also have a stance. This is their offer. But what is important to me, our workers are safe."
Key Deal Points
In addition to the exemption of tariffs for American products, Indonesia will also purchase 50 Boeing aircraft. Prabowo explained that the government needs to develop Garuda Indonesia, as it is the national carrier and a source of pride for Indonesia.
"We need new planes. I think there's no problem because we need them, and they want to sell. Boeing planes are also quite good. This is also from Airbus," Prabowo noted.
President Donald Trump announced the trade deal with Indonesia via a post on his Truth Social account on Tuesday, July 15, 2025. He stated that Indonesian goods entering the U.S. would be subject to a 19 percent import tariff.
This agreement was reached after Trump's discussion with Prabowo. In return, Indonesia agreed to buy US$15 billion worth of energy from the U.S., US$4.5 billion worth of agricultural products, and 50 Boeing aircraft, primarily from the 777 series.
Dewi Rina Cahyani contributed to the writing of this report.
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