Trump Says US-Indonesia Deal Finalized, Yet To Disclose Details

President Donald Trump said on Tuesday that the U.S. has struck a deal with Indonesia but offered no details on what it includes.

In a post on Truth Social, the President said, “I dealt directly with their highly respected President. DETAILS TO FOLLOW!”

The U.S. equity markets were mixed on Tuesday morning. The SPDR S&P 500 ETF (SPY) edged 0.1% higher while the Invesco QQQ Trust Series 1 (QQQ) jumped 0.6% as stocks in the tech-heavy Nasdaq 100 rallied. The SPDR Dow Jones Industrial Average ETF (DIA), however, fell almost 0.5% in morning trade.

On Stocktwits, retail sentiment around SPY dipped to ‘bearish’ from ‘neutral’ territory over the past day. While retail sentiment around DIA was higher in the ‘neutral’ zone, it also saw a dip, down from ‘bullish,’ in the last 24 hours. 

Indonesia’s deal with the U.S. comes on the heels of the country finalizing a ‘political agreement’ with the European Union (EU) to advance a free trade deal between the two on Sunday. They have been negotiating since 2016 to agree to a deal that is expected to increase trade and investment. 

Earlier this month, Indonesia offered to cut duties on key imports from the U.S. to “near zero,” and buy $500 million worth of U.S. wheat as part of tariff negotiations with Washington. 

“We’re offering to purchase goods worth more than what the US trade deficit is – $34 billion in total, compared to the $19 billion deficit,” said Indonesia’s chief economics minister and lead negotiator Airlangga Hartarto.

He added that the country’s national airline, Garuda Indonesia, would be buying more Boeing (BA) planes as part of the deal. Garuda’s CEO also stated that the airline is in discussions with Boeing to purchase up to 75 aircraft. 

Hartarto explained that tariffs on key American exports, including agricultural products, would be reduced to near-zero from the current range of between 0% and 5%. He also said that Indonesia is hoping to secure a better deal than Vietnam, which recently signed a trade agreement with the U.S., subjecting it to tariffs ranging from 20% to 40%. 

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