Indonesia hails 'new era' with US after Trump trade pact

Indonesian leader Prabowo Subianto on Wednesday hailed a "new era of mutual benefit" with Washington after President Donald Trump announced Indonesian goods entering the United States would face a 19 percent tariff, far below the 32 percent he had earlier threatened.

"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," he wrote in an Instagram post, without providing details of the deal.

Prabowo, a populist former general, posted pictures of himself laughing on the phone with Trump.

The US leader said Tuesday he had struck the pact in return for significant purchase commitments from Jakarta following negotiations, including a pledge to buy 50 Boeing jets.

The Trump administration has been under pressure to wrap up trade pacts after promising a flurry of deals recently, as countries sought talks with Washington to avoid the US president's tariff plans.

Prabowo had sent his top economic minister to Washington and his administration secured a better deal than the 20 percent that Trump said he had given to Southeast Asian neighbour Vietnam.

Indonesian presidential spokesman Hasan Nasbi said Wednesday the deal was "progress that cannot be called small".

"It is an extraordinary negotiation conducted directly by our president with President Donald Trump," he said, confirming the new 19 percent rate.

Prabowo was set to land back in Indonesia on Wednesday afternoon from a trip to Europe, before giving a statement.

© Agence France-Presse