Indonesia plans to sign an $8 billion contract with US firm KBR Inc for 17 modular refineries as part of a new trade deal that lowers US tariffs on Indonesian products.

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

President Donald Trump announced on Tuesday that the U.S. and Indonesia have agreed to a trade deal after speaking with the country's president.

JAKARTA (Reuters) -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.

Malaysia’s government is seeking to lower US tariffs threatened by President Donald Trump to about 20%, but is reluctant to meet certain demands around electric vehicles and foreign ownership, Bloomberg reported.

Long before President Trump wielded tariffs as a weapon to punish Indonesia, the country was fighting back a flood of cheap Chinese goods.

Indonesia has secured a new import tariff agreement with the United States, reducing the rate on selected products to 19 percent, down from the previous 32 percent. The breakthrough followed a series of high-level negotiations,