Indonesian sovereign wealth fund Danantara plans to sign an $8 billion engineering, procurement and construction contract with U.S. engineering firm KBR Inc to build 17 modular refineries, according to two sources familiar with the matter and an official economic ministry presentation seen by Reuters.

President Trump said the agreement would partly walk back some of the steep tariffs he threatened on the country last week. Indonesia’s president called Mr. Trump a “tough negotiator.”

Indonesia plans to sign an $8 billion contract with US-based company KBR Inc to build 17 modular oil refineries, according to a government presentation and two sources familiar with the matter, Reuters reported on Monday.

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%.

Indonesia’s recent agreements with the Western superpower and the European bloc could set the path for other nations seeking similar arrangements. But experts warn against potential pitfalls and sacrificing domestic interests.

American President Trump aims for US market access into India, similar to the Indonesia trade deal. However, India seeks even lo

Indonesia's chief economic minister Airlangga Hartarto said on Monday that a 19% tariff on Indonesian goods entering the United States could come into effect sooner than an August 1 deadline set by U.