The United States maintains a $17.9 billion goods trade deficit with Indonesia.
The United States and Indonesia have reached a trade agreement, President Donald Trump announced on social media.
“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President,” Trump said in a July 15 post on Truth Social.
Trump told reporters shortly after that Indonesia would be subjected to a 19 percent tariff. U.S. goods, meanwhile, will not be faced with tariffs and will have full access to the Indonesian market.
“You have to understand, we had no access into any of these countries,” he said. “Our people couldn’t go in. And now we’re getting access because of what we’re doing with the tariffs.”
This comes soon after the president sent a formal letter to Indonesia announcing a 32 percent levy on Indonesian goods entering the United States, effective Aug. 1.
Data from the U.S. Trade Representative’s Office indicates that the U.S. goods trade deficit with Indonesia was $17.9 billion in 2024, a 5.4 percent increase from the previous year.
Indonesia’s main exports to the United States are consumer electronics, apparel, and footwear.
Last week, he sent out a batch of letters to more than 20 U.S. trade partners, including Japan, South Korea, and Canada, outlining the tariff rates.
Similar to his other letters, Trump informed Indonesian President Prabowo Subianto that his country would not be subject to levies if it or its companies built or manufactured products in the United States.
According to the National Trade Estimate Report, released shortly before the president unveiled the contours of his tariff plans on April 2, Indonesia has maintained aggressive tariffs and non-monetary trade barriers.
U.S. trade officials pointed to various restrictions, taxes, and public policy instruments that discriminate against American companies and products.
In a follow-up Truth Social post, Trump said Indonesia will purchase $15 billion in U.S. energy, $4.5 billion in agricultural goods, and 50 Boeing jets.
“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,” the president added.
He also clarified that any transshipment from a higher-tariffed country will be added to the tariff Indonesia pays.
By Andrew Moran
