Indonesia will drop tariffs to zero on more than 99% of its trade with the United States and will also eliminate all non-tariff barriers for American goods in a deal that cuts threatened U.S. tariffs on Indonesian products to 19% from an initial 32%, a senior Trump administration official said on Tuesday, Reuters reported.

Indonesia is still negotiating details of its recently-reached trade deal with the United States after Washington lowered tariff rates on the Southeast Asian country, and is pursuing exemptions for its exports of palm oil and nickel, an official said on Friday, Reuters reported. The two countries reached a trade deal this week that led to a reduction in the threatened U.S. proposed tariff rate to 19% from 32%. The deal was one of only a handful reached so far by the Trump administration ahead of the August 1 negotiation deadline with numerous countries.

Indonesia’s central bank resumed its interest rate-cutting cycle, as cooling inflation provides ample room to support the economy, the Wall Street Journal reported. Bank Indonesia’s decision to cut its benchmark seven-day reverse repo rate by 25 basis points to 5.25% comes amid news of a trade deal with the U.S. that could ease the tariff overhang on the economy. Wednesday’s decision had been expected to be a close one, with domestic conditions and rupiah stability conducive to a cut but external uncertainties backing the case for caution.

Indonesia’s president, Prabowo Subianto, confirmed on Wednesday the broad outlines of a trade agreement with the United States that was reached after what he called “tough negotiations” with Washington, the New York Times reported. Under the terms, which President Trump on Tuesday called a “great deal for everybody,” U.S. exports to Indonesia would face no tariffs, while Indonesian goods would be charged a tariff of 19 percent in the United States. Mr. Prabowo confirmed in brief remarks in Jakarta that the two nations had “finally” reached an agreement.

Indonesia will sign a pact worth $34 billion with business partners next week to boost purchases from the U.S., as part of efforts to strike a trade deal with Washington ahead of the July 9 deadline, Indonesia's chief economic minister said on Thursday, Reuters reported. The deal would include increasing imports of fuels and investment by Indonesian companies in energy and agriculture sectors in the U.S. Separately, flag carrier Garuda Indonesia (GIAA.JK), opens new tab also said it is in talks to buy up to 75 jets from Boeing BA.N. Jakarta is facing a 32% tariff in U.S.

Indonesia’s central bank has resumed its rate-cutting cycle as cooling inflation, slower growth and a steadier rupiah offer room to loosen policy settings, the Wall Street Journal reported. Bank Indonesia on Wednesday cut its benchmark seven-day reverse repo rate by 25 basis points to 5.50%, breaking a streak of three consecutive holds. It also trimmed its annual growth forecast slightly, citing the impact of global uncertainty amid U.S. reciprocal tariffs. “Policy responses must be strengthened to boost growth,” Bank Indonesia Gov. Perry Warjiyo said at a press conference.

Indonesia’s central bank kept rates on hold even as slowing growth backs the case for a cut, opting to lend support to the rupiah as it watches to see how U.S. tariffs develop, the Wall Street Journal reported. Bank Indonesia’s decision to keep its benchmark seven-day reverse repo rate at 5.75% on Wednesday was widely expected. The central bank also maintained its overnight deposit facility rate at 5.00% and its lending facility rate at 6.50%.