On July 16, U.S. President Donald Trump announced that the United States would impose a uniform 19% tariff on goods imported from Indonesia. In return, Indonesia will eliminate tariffs and non-tariff barriers on U.S. goods, with additional deals—including a new tariff plan targeting pharmaceuticals—set to be unveiled soon.

A spokesperson for Indonesian President Joko Widodo told reporters on Wednesday: "This was an extraordinary battle led by our negotiation team under the coordination of the Coordinating Minister for Economic Affairs."

Heriyanto Irawan, an advisor to Indonesia's National Economic Council (DEN), told Bloomberg Television that the agreement marked a "major breakthrough" for Indonesia's labor-intensive industries, such as textiles and footwear, providing greater access to the U.S. market.

Susiwijono Moegiarso, secretary of Indonesia's Coordinating Ministry for Economic Affairs, stated on the same day that Indonesia was preparing to release a joint statement with the U.S., detailing non-tariff measures and specific commercial agreements.

"They pay 19%, and we pay nothing," Trump told reporters at the White House. "We will have full access to the Indonesian market, and several more deals will be announced soon."

According to the agreement, Indonesia has committed to purchasing:

1. 50 Boeing aircraft

2. $15 billion worth of energy products

3. $4.5 billion worth of agricultural products

Meanwhile, Indonesia will waive tariffs and non-tariff barriers on U.S. goods.

Trump noted that this deal was similar to a preliminary agreement reached with Vietnam: "The U.S. imposes a uniform tariff of about twice the original rate (approximately 19–20%) on imports, while U.S. exports face no tariffs."

The agreement also includes a "re-export" clause: if Chinese goods are found to be transshipped through Indonesia to the U.S., punitive tariffs will be applied.

On the day of the announcement, Indonesia's stock market rose by 0.7%. Analysts believe the deal will boost confidence in related industries and temporarily stimulate economic activity.