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.

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

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%.

US President Donald Trump said he has settled on another tariff deal - this time with Indonesia. Trump said he had agreed to lower tariffs he had threatened on goods entering the US from Indonesia to 19%, in exchange for what he called "full access" for American firms.

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.

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.

U.S. President Donald Trump said Tuesday that a trade deal with Indonesia was reached to set 19% tariffs on its U.S. exports.

President Trump said Indonesia has completely caved on trade negotiations, eliminating all tariffs on U.S. goods and agreeing to pay the 19% on things they buy from America. PRESIDENT DONALD TRUMP We made a deal with Indonesia.

El presidente de Estados Unidos, Donald Trump, dijo que llegó a un acuerdo con Indonesia bajo el cual los productos del país del sudeste asiático estarán sujetos a un arancel del 19%, mientras que las exportaciones estadounidenses no enfrentarán gravámenes.