Latest news with #PrabowoSubianto
Yahoo
5 hours ago
- Business
- Yahoo
Trump Locks In 19% Tariff Deal with Indonesia--Boeing Wins Massive Jet Order
Indonesia may have just scored one of its biggest trade wins in years. President Prabowo Subianto confirmed he reached a deal with Donald Trump to cap US tariffs at 19%, down from the 32% that had been floated earlier. In return? A potential $15 billion in US energy imports, $4.5 billion in agriculture purchases, and a 50-plane order from Boeing (NYSE:BA) to upgrade Garuda Indonesia's aging fleet. The announcement, made after direct talks between the two leaders, gives Indonesia the second-lowest US tariff rate in the regiononly Singapore is lower. Prabowo called the negotiations tough, but fair, and suggested a follow-up trip to Washington this fall. Warning! GuruFocus has detected 6 Warning Signs with BA. Investors now have one less thing to worry about. The trade deal could give Indonesia's labor-heavy sectors like textiles and palm oil a shot in the arm. These exports only account for ~2% of Indonesia's GDP, but the jobs they support matter a lot more politically. Local officials are calling the outcome a huge win, and while 19% is still a tough rate, it's a far cry from where things were headed. Boeing's involvement adds another layerGaruda's fleet needs replacing, and US plane makers are clearly back in play. The surprise in all this isn't just the numbersit's the fact that a deal got done, when so many expected more delay. Still, plenty of fog remains. Indonesia's central bank moved quickly, cutting interest rates just hours before the announcement, and signaling it's ready to ease further if needed. The government recently trimmed its growth outlook to 5% for the year, citing trade risks. While the tariff news helps stabilize sentiment, analysts say it's too early to gauge the full macro impact without knowing when the purchases will materializeor how the US might respond in an election year. For now, though, the market got what it wanted: less noise, more clarity, and a signal that Indonesia can still play the geopolitical game when it counts. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
5 hours ago
- Business
- Yahoo
Trump Locks In 19% Tariff Deal with Indonesia--Boeing Wins Massive Jet Order
Indonesia may have just scored one of its biggest trade wins in years. President Prabowo Subianto confirmed he reached a deal with Donald Trump to cap US tariffs at 19%, down from the 32% that had been floated earlier. In return? A potential $15 billion in US energy imports, $4.5 billion in agriculture purchases, and a 50-plane order from Boeing (NYSE:BA) to upgrade Garuda Indonesia's aging fleet. The announcement, made after direct talks between the two leaders, gives Indonesia the second-lowest US tariff rate in the regiononly Singapore is lower. Prabowo called the negotiations tough, but fair, and suggested a follow-up trip to Washington this fall. Warning! GuruFocus has detected 6 Warning Signs with BA. Investors now have one less thing to worry about. The trade deal could give Indonesia's labor-heavy sectors like textiles and palm oil a shot in the arm. These exports only account for ~2% of Indonesia's GDP, but the jobs they support matter a lot more politically. Local officials are calling the outcome a huge win, and while 19% is still a tough rate, it's a far cry from where things were headed. Boeing's involvement adds another layerGaruda's fleet needs replacing, and US plane makers are clearly back in play. The surprise in all this isn't just the numbersit's the fact that a deal got done, when so many expected more delay. Still, plenty of fog remains. Indonesia's central bank moved quickly, cutting interest rates just hours before the announcement, and signaling it's ready to ease further if needed. The government recently trimmed its growth outlook to 5% for the year, citing trade risks. While the tariff news helps stabilize sentiment, analysts say it's too early to gauge the full macro impact without knowing when the purchases will materializeor how the US might respond in an election year. For now, though, the market got what it wanted: less noise, more clarity, and a signal that Indonesia can still play the geopolitical game when it counts. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Striking trade deal with US was an ‘extraordinary struggle,' Indonesia says
President Donald Trump said Tuesday the United States has reached a trade agreement with Indonesia. Getting to that was a grueling process, Indonesia's President Prabowo Subianto said Wednesday. The agreement calls for the US imposing a 19% tariff on Indonesia's exports, a reduction from the 32% Trump briefly imposed on the country in April. After first announcing the agreement on Truth Social, Trump told reporters that Indonesia would not charge any tariffs on American exports. Trump also said Indonesia committed to buying '$15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's.' Nearly 24 hours after Trump announced the agreement, Indonesia's government confirmed it, saying Subianto had negotiated it directly with Trump over the phone. Jakarta described negotiations as an 'extraordinary struggle.' 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told Reuters. Prabowo is expected to reveal more detail later on Wednesday. In a post on Instagram, the Indonesian president wrote the two sides 'agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit between our two great nations.' Before departing the White House to speak at a summit in Pittsburgh on Tuesday, Trump said Indonesia is 'known for high-quality copper, which we'll be using.' That may mean that copper from the country could face lower tariffs, or no tariffs, if Trump proceeds with his threat to levy a 50% tax across all copper imports on August 1. While Indonesia shipped $20 million worth of copper to the US last year, according to US Commerce Department data, that's far behind top suppliers Chile and Canada, which sent $6 billion and $4 billion worth of the metal to the US last year. 'No tariffs there; they pay tariffs here. Switching the asymmetry our way,' US Commerce Secretary Howard Lutnick said in a CNBC interview on Tuesday. Trump said India is 'working along the same line' with regard to securing a trade agreement. In April, Trump briefly imposed a 32% tariff on goods from the country before pausing so-called 'reciprocal' tariffs. Countries that were due to face those tariffs have been charged a minimum 10% tariff for the past three months. That's due to end on August 1. 'Great deal, for everybody, just made with Indonesia. I dealt directly with with their highly respected President,' Trump wrote on his social media platform Tuesday morning. 'DETAILS TO FOLLOW!!!' This marks Trump's fourth trade agreement announcement in three months. He had previously promised dozens of deals with US trading partners over that time frame, but that has proven tough to reach. One of the four agreements he previously announced was with Vietnam earlier this month, similarly posting on Truth Social. But the administration has yet to announce any more information on that agreement. Trump's volatile trade policy has paralyzed many businesses. Some fear that new orders they place for products manufactured overseas could be tariffed at dramatically higher rates given Trump can — at the flick of a switch — change rates charged on a country's exports. Trump has said companies can avoid such headaches by moving production to the United States. But it's not so simple in practice: Businesses may not only encounter difficulty finding the right workers, but it could take years — and many millions of dollars — before manufacturing facilities are up and running. Then, once production is moved to the US, costs could increase, leading to higher prices for American consumers. Representatives from the Indonesian government did not immediately respond to CNN's request for comment. Indonesia is America's 23rd top trading partner, US Commerce Department data from last year shows. The United States imported $28 billion worth of merchandise from there last year. Apparel and footwear were the top two goods Americans bought. Meanwhile, the US exported $10 billion worth of goods there last year. Oilseeds and grain as well as oil and gas were the top two exports. CNN's Bryan Mena contributed to this article. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Barnama
9 hours ago
- Business
- Barnama
Prabowo And Trump Agree On New Era Of Mutual Benefit In Bilateral Trade
Indonesia's President-Elect Prabowo Subianto speaks at the Shangri-La Dialogue in Singapore in this June 2024 file photo. Prabowo expressed confidence that Nusantara, the new capital city in East Kalimantan, will be fully operational as Indonesia's capital within the next three years. -- Photo by REUTERS/Edgar Su By Mohd Iswandi Kasan Anuar JAKARTA, July 16 (Bernama) -- Indonesia's President Prabowo Subianto said he had a 'very good' phone call with United States (US) President Donald Trump, during which they discussed efforts to deepen bilateral trade ties. In an Instagram post on Wednesday, Prabowo said the two leaders had agreed to usher in 'a new era of mutual benefit' in economic relations between Indonesia and the US. bootstrap slideshow 'President Trump extends his warm regards to the people of Indonesia,' he added. The post was accompanied by two photos showing Prabowo in a bright room, first sitting calmly on a phone call, then laughing and leaning back in a relaxed moment. On Tuesday, Trump wrote on his Truth Social platform that he had finalised an important deal with Indonesia after speaking with Prabowo, and that the landmark agreement opens up Indonesia's entire market to the US for the first time in history. He also announced that his administration would reduce tariffs on Indonesian imports from 32 per cent to 19 per cent, while US exports to Indonesia would face no tariff or non-tariff barriers. As part of the deal, Indonesia has committed to purchasing US$15 billion worth of energy products, US$4.5 billion in agricultural goods, and 50 Boeing jets, he added. -- BERNAMA
CNA
10 hours ago
- Business
- CNA
Indonesia reaches trade deal with US, will pay 19% tariffs and buy 50 Boeing jets
Indonesian President Prabowo Subianto has hailed a "new era of mutual benefit", after his US counterpart Donald Trump announced Indonesian goods would face a 19% tariff instead of 32%. The months-long negotiations come at a cost. Indonesia has committed to purchasing US$15 billion in US energy, importing US$4.5 billion worth of agricultural products and buying 50 Boeing jets. Mr Trump also said Indonesia has agreed to give the US tariff-free access to its market. Meanwhile, economists warned the agreement may not be ideal in the long run and could lead to a trade deficit with the US. Chandni Vatvani reports.
