US President Donald Trump said he had concluded a trade pact with Indonesia, as a result of which the Southeast Asian country has made significant commitments to purchase goods after negotiations to avoid higher tariffs.

Indonesian goods entering the US will be subject to a 19% tariff, Trump wrote in a post on his Truth Social platform. This is significantly below the 32% level that the US president had previously threatened.

"As part of the agreement, Indonesia has committed to purchasing $15 billion in US energy, $4.5 billion in US agricultural products, and 50 Boeing aircraft, many of which are 777s," he wrote.

Boeing shares closed down 0.2% after the announcement.

The Trump administration is under pressure to finalize trade pacts after recently promising numerous deals as countries seek to negotiate with Washington to avoid the US president's tariff plans.

So far, however, Trump has only revealed other deals with the UK and Vietnam, along with an agreement to temporarily reduce tariffs with China.

Last week, he renewed his threat of a 32% tariff on Indonesian goods and said in a letter to the country's leadership that it would take effect on August 1.

It remains unclear when the lower tariffs announced on June 15 will take effect for Indonesia. The period during which the various purchases will be made was also not specified.

Trump wrote on social media that, according to the deal finalized after his conversation with Indonesian President Prabowo Subianto, goods that were transshipped to avoid higher tariffs will be subject to stricter tariffs.

He also said that other deals are being worked on, including with India, while talks with the European Union are still going on.

Indonesian President Hassan Nasib's spokesperson said the deal is "progress that can't be called small."

"These are extraordinary negotiations led directly by our president with President Donald Trump," he said, confirming the new 19% rate.

He explained that Prabowo would make a statement on the deal this afternoon, July 16, after landing from a visit to Europe.

Former Indonesian Deputy Foreign Minister Dino Patti Djalal said at a Foreign Policy event on July 15 that insiders in the government had indicated they were satisfied with the new deal. | BGNES