Will Indonesia lose out after Trump’s ‘landmark’ trade deal with Prabowo?

While Indonesia’s exports to the US will face a lower 19 per cent tariff, its farming sector could be adversely affected, analysts say

Reading Time:4 minutes

Indonesian farmers could be at the losing end of a Jakarta-Washington trade deal, analysts say. Photo: EPA-EFE

Published: 5:00pm, 16 Jul 2025Updated: 12:08pm, 17 Jul 2025

Indonesia has hailed its new trade deal with the United States as a diplomatic “success” that will lower tariffs and boost exports to the world’s largest economy, even as analysts warn the agreement could harm local farmers and compromise energy security.

Hasan Nasbi, head of the presidential communications office, said the deal should be “appreciated”, noting that the 19 per cent tariff imposed on Indonesian goods entering the US market was lower than Vietnam’s 20 per cent rate.

Hasan said that the new levy was not a “small achievement” as it was “the result of extraordinary efforts by our negotiating team”, led by President Prabowo Subianto.

Prabowo wrote on Instagram: “I had a very good call with President Donald Trump. Together, we agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit.”

Trump on Tuesday announced what he called a “landmark deal” with Prabowo, whom he described as “highly respected”. Under the agreement, US goods will enter Indonesia without tariffs along with an easing of other trade barriers, while Indonesia commits to major purchases of American products.

“Indonesia has committed to purchasing US$15 billion in US energy, US$4.5 billion in American agricultural products, and 50 Boeing jets, many of them 777s,” Trump wrote.

Will Indonesia lose out after Trump’s ‘landmark’ trade deal with Prabowo?

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}While Indonesia’s exports to the US will face a lower 19 per cent tariff, its farming sector could be adversely affected, analysts say

While Indonesia’s exports to the US will face a lower 19 per cent tariff, its farming sector could be adversely affected, analysts say