India seeks lower tariff than Indonesia
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Trump announces trade deal with Indonesia, 19% tariff
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Indonesia's central bank delivered on Wednesday its fourth rate cut in an easing cycle that began in September, boosting support for Southeast Asia's biggest economy as it faces pressure from weakening global trade and slowing domestic demand.
Indonesia sees securing a 19% tariff rate with the US as a “huge win” for some of the Southeast Asian nation’s most labor-intensive sectors such as garments and footwear, a government adviser said Wednesday.
President Trump said Indonesia has completely caved on trade negotiations, eliminating all tariffs on U.S. goods and agreeing to pay the 19% on things they buy from America. PRESIDENT DONALD TRUMP We made a deal with Indonesia.
The decision by Bank Indonesia to cut rates comes amid news of a trade deal with the U.S. that could ease the tariff overhang on the economy.
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Indonesian rescuers are searching for 11 people, including three children, still missing after a speedboat capsized during a storm the previous day off Indonesia’s Mentawai Islands
Indonesia’s recent agreements with the Western superpower and the European bloc could set the path for other nations seeking similar arrangements. But experts warn against potential pitfalls and sacrificing domestic interests.
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