TEMPO.CO, Jakarta - Bank Indonesia welcomes the U.S. tariff reduction from 32 percent to 19 percent for Indonesia. The governor of the Indonesian central bank, Perry Warjiyo, expects positive impacts from the deal on the country's financial market and economic growth.
According to Perry, the trade deal will provide certainty for market players both within and out of the country, thus positively affecting market expectations and short-term foreign capital inflows into Indonesia.
"This will also boost the expectations of businesses and financial sector players in making future business decisions," Perry said in a virtual press conference after the BI Board of Governors Meeting held on Wednesday, July 16, 2025.
Perry believes that the tariff negotiations will also have a positive impact on trade. "Export performance is expected to remain positive considering the trade deal with the U.S. government," he said.
The tariff deals are also expected to boost productive imports that will drive economic growth. In May 2025, Bank Indonesia recorded a trade surplus of US$4.3 billion, up from the US$0.2 billion surplus the previous month.
Trump announced that his government will lower the charges on Indonesia through post on Social Truth, which he said was a result of direct negotiation with President Prabowo.
"Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE," Trump wrote via the @realDonaldTrump account quoted on Wednesday, July 16, 2025.
Indonesia, Trump added, is also committed to investing in a number of American products, which includes US$15 billion in U.S. energy sectors, US$4.5 billion in agricultural products, and purchasing 50 Boeing Jets with most being 777 aircraft.
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