Indonesia's president reaches a trade deal with US while in Washington
for Trump's Board of Peace
[February 20, 2026] By
DIDI TANG, NINIEK KARMINI and ANIRUDDHA GHOSAL
WASHINGTON (AP) — The White House announced a reciprocal trade agreement
with Indonesia on Thursday while President Prabowo Subianto was in
Washington to attend the first meeting of President Donald Trump's Board
of Peace.
Under the agreement, Southeast Asia’s largest economy will eliminate
tariffs for 99% of American goods while the U.S. will maintain tariffs
on most Indonesian goods at 19%, the White House said. That is the same
rate the U.S. has set for Cambodia and Malaysia. Indonesia also agreed
to address non-tariff barriers to U.S. goods and to remove restrictions
on exports to the U.S. for critical minerals and other industrial
commodities, the White House said.
Indonesian and U.S. companies also reached 11 deals this week worth
$38.4 billion, including purchases of U.S. soybeans, corn, cotton and
wheat, cooperation in critical minerals and oil field recovery, and
joint ventures in computer chips.
“We have negotiated very intensively over the last few months, and I
think we have reached solid understandings on many issues," Prabowo told
business executives Wednesday at the U.S. Chamber of Commerce.
A White House statement called it a “great deal" and said it “will help
both countries to strengthen economic security, promote economic growth,
and thereby continuously lead to global prosperity.”
The agreement was later signed by U.S. Trade Representative Jamieson
Greer and his Indonesian counterpart, Airlangga Hartarto.
Hartarto told a news conference from Washington that both governments
cast the agreement as marking the start of a “new golden age” in
bilateral economic ties and Indonesia will introduce measures designed
to keep trade flows secure and prevent misuse of sensitive goods.
Indonesia's pledge for Gaza stabilization force
The agreement was announced the same day that Prabowo, leader of the
world’s most populous Muslim country, reiterated his pledge at the Board
of Peace meeting to send 8,000 troops or “more if necessary” for an
international stabilization force in Gaza.
Indonesia was among the first to make a firm commitment to a critical
element of Trump’s postwar Gaza reconstruction plan.
“President Prabowo of Indonesia, thank you very much,” Trump said at the
Board of Peace meeting. “It’s a big country you have, and you do a great
job.”
Prabowo praised Trump in return. “We are very optimistic with the
leadership of President Trump, this vision of real peace will be
achieved,” Prabowo said. “There will be problems, but we will prevail.”
Cambodia and Vietnam are the two other Southeast Asian countries that
joined the board, which was originally envisioned as overseeing the Gaza
ceasefire but has taken shape with wider ambitions to broker other
global conflicts.
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U.S. Secretary of State Marco Rubio meets with Indonesia's Foreign
Minister Sugiono at the U.S. Department of State Thursday, Feb. 19,
2026, in Washington. (AP Photo/Tom Brenner)
 Their leaders also came to
Washington for the inaugural meeting. Cambodia has already inked a
trade deal with the U.S., while Vietnam has reached a framework
agreement.
Critical minerals play into Indonesia deal
Indonesian companies agreed this week to buy 1 million tons of
soybeans, 1.6 million tons of corn and 93,000 tons of cotton from
the U.S. They also pledged to buy up to 5 million tons of U.S. wheat
by 2030.
The countries agreed to cooperate on critical minerals, though
details were not immediately available.
Washington is seeking Indonesia’s agreement to lift restrictions on
critical mineral exports, which the Trump administration argues
could safeguard U.S. manufacturers from supply‑chain disruptions.
The administration has sought to defend against China’s stranglehold
on the key elements needed for everything from fighter jets to
smartphones.
At the Chamber of Commerce event, Prabowo said Indonesia can serve
as a “bridge” and “honest broker” between great powers, apparently
referring to the U.S.-China competition.
Vietnam's leader makes first visit to the US since being
reelected
At the Board of Peace meeting, Trump called Vietnam “incredible as a
country and as a force” and told leader To Lam that it was “a really
great honor to have you."
Lam's visit to the U.S. is his first since he was reelected as the
head of Vietnam's ruling Communist Party last month. Typically,
China is an initial stop in a nod to the countries' ideological ties
and Beijing’s status as Vietnam’s largest trading partner. Lam did
visit China in August 2024 before traveling to the U.S. during his
first term.
Analysts say Lam's visit to the U.S. before traveling to Beijing
this time around is a notable shift in sequencing. Hanoi describes
its foreign policy as independent and balanced among major powers.
Trade negotiations between Vietnam and the United States are ongoing
following the Trump administration levying 20% tariffs on Vietnamese
exports. The latest, sixth round of talks concluded in early
February.
___
Karmini reported from Jakarta, Indonesia, and Ghosal from Hanoi,
Vietnam.
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