Indonesia's president reaches a trade deal with US while in Washington for Trump's Board of Peace

The White House has announced a trade agreement with Indonesia NewsWorldAmericasIndonesia's president reaches a trade deal with US while in Washington for Trump's Board of PeaceThe White House has announced a trade agreement with IndonesiaDidi Tang, Niniek Karmini & Aniruddha GhosalFriday 20 February 2026 02:13 GMTBookmarkBookmark popoverRemoved from bookmarksClose popoverTrump Board of Peace (Copyright 2026 The Associated Press. All rights reserved.)Your support helps us to tell the storyRead moreSupport NowFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.Your support makes all the difference.Read more 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. would 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 representatives of Indonesia and U.S. Trade Representative Jamieson Greer. 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.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 r