Indonesia said on Wednesday it had reached a trade deal with the United States after an "extraordinary struggle" in negotiations which resulted in a reduction of proposed U.S. tariff rates on Indonesian goods to 19% from 32%.

Donald Trump has announced that Indonesia will pay a 19 per cent tariff on exports to the US after Washington and Jakarta agreed a trade deal. The US president said he had spoken to his Indonesian counterpart Prabowo Subianto, and that the deal with Jakarta will give the US “full access to Indonesia, everything”.

Indonesia and the U.S. have brokered a significant trade agreement that lowers tariffs from 32% to 19%. This deal involves Indonesia purchasing Boeing jets and U.S. energy and agricultural products. It is expected to positively impact Indonesia's economy and mirrors earlier pacts with Southeast Asian countries.