Indonesia Secures Trade Deal with U.S. after Tough Negotiations

Indonesia announced a significant trade agreement with the United States on Wednesday, following what officials described as an 'extraordinary struggle' in negotiations. The deal, which reduces U.S. proposed tariffs on Indonesian exports to 19% from 32%, was confirmed after discussions between President Donald Trump and Indonesian President Prabowo Subianto.

Hasan Nasbi, spokesperson for the Indonesian president, highlighted the efforts of the negotiating team led by the Coordinating Minister for Economic Affairs. Nasbi noted that Prabowo directly spoke with Trump, setting the stage for continued negotiations, even with the agreement in place. The U.S. and Indonesia will further their trade relationship, with Indonesia committing to buy $15 billion worth of U.S. energy and $4.5 billion in agricultural products.

Following the announcement, the Jakarta stock index experienced a positive uptick, reflecting optimism in the market. Bank Indonesia indicated that the trade deal would positively influence the country's exports and economic growth, bolstered further by a 0.8% increase in the JKSE on Wednesday. Analysts anticipate further central bank rate cuts to sustain economic momentum.

(With inputs from agencies.)