Indonesia said on Wednesday (July 16) it had reached a trade deal with the United States after an "extraordinary struggle" in negotiations which resulted in a reduction of proposed US tariff rates on Indonesian goods to 19% from 32%.
US President Donald Trump said the deal would enable the US to have access to the Indonesian market and the US will not need to pay tariffs on its imports into Indonesia.
00:00The Indonesian government on Wednesday said it had reached a trade deal with the United States
00:06after what it described as an extraordinary struggle in negotiations.
00:11Their talks resulted in a reduction of proposed U.S. tariff rates on Indonesian goods from 32% to 19%.
00:30This is a war-warned war from our negotiations, which is a war-warned war, which is a war-warned war, which is a war-warned war by President Donald Trump.
00:41And this is the point of view between the government and the government of the United States.
00:47When Vietnam, from the beginning of the year, negotiations with the United States,
00:54it has reached 20%, there are many people who appreciate it because they have managed to negotiate with the United States.
01:04Now, our government, from the beginning of the year, has reached 19%.
01:09So, it's less than the other countries in Asia.
01:15President Indonesia, Prabowo Subianto, said he and his American counterpart Donald Trump had agreed
01:22and concluded to take trade relations between the two nations into a new era of mutual benefits.
01:28I spoke to their really great president, very popular, very strong, smart.
01:34And we made the deal.
01:36We have full access to Indonesia, everything.
01:39We will pay no tariffs.
01:41So, they are giving us access into Indonesia, which we never had.
01:46That's probably the biggest part of the deal.
01:48And the other part is they are going to pay 19%.
01:52And we are going to pay nothing.
01:55And you have to understand, we had no access into any of these countries.
01:58Our people couldn't go in.
02:00And now we're getting access because of what we're doing with the tariffs.
02:04Now, Indonesia has some great product.
02:06And they also have some very valuable earths and various other materials.
02:11One of the things, as you know, they're known for is very high-quality copper, which we'll be using.
02:16Last year, Indonesia ran a goods trade surplus of 17.9 billion U.S. dollars with the U.S.
