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.

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.

Donald Trump said the US had reached a trade deal with Indonesia that would result in goods from the south-east Asian nation to the US being hit with a 19 per cent tariff and Jakarta buying American energy and Boeing jets.

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.

Indonesia's central bank cut rates on Wednesday for the fourth time since September and said a revised tariff deal with the United States was positive for Southeast Asia's biggest economy amid weakening global trade and slowing domestic demand.

Indonesia also has agreed to purchase billions in U.S. energy, agriculture products and airplanes, Trump said July 15 in a social media post.

Heritage Foundation research fellow EJ Antoni on the impact new energy investment will have on inflation and the White House's trade agreement with Indonesia.

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

The project will build on sovereign AI initiatives announced last year by Indonesian tech leaders and Nvidia. The CoE will support Indonesian AI research, develop local AI talent, and help startup companies deliver innovations to build out the nation’s AI infrastructure.