US, Indonesia finalize trade deal cutting tariffs to 19%

The US and Indonesia finalized a trade deal on Thursday to reduce US tariffs on the Southeast Asian nation to 19% from 32%, the White House announced.

In return, Indonesia will remove trade barriers on more than 99% of US imports and facilitate over $30 billion in purchases of American goods.

Washington also granted tariff exemptions on certain Indonesian exports, including selected clothing and textile products made with US-sourced cotton and synthetic materials.

US Trade Representative Jamieson Greer said the agreement "breaks down trade barriers" and advances the interests of the American people.

The agreement was reached during a visit to Washington by Indonesian President Prabowo Subianto, who attended the first meeting of the Trump-led "Board of Peace" initially focused on Gaza's reconstruction.

Indonesia will remove trade barriers on a range of American imports, including agricultural products, healthcare goods, seafood, technology and automotive-related items.

Jakarta has also pledged to purchase billions of dollars' worth of US products, including cotton, soybeans, beef, Boeing aircraft and energy supplies.

Besides, Indonesia will support US companies in developing its rare earths infrastructure, a move aimed at helping Washington diversify and strengthen its supply of critical minerals.

On Wednesday, Indonesian and US companies signed a series of agreements worth $38.4 billion, covering partnerships in mining, technology, textiles and other sectors.