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Indonesian leader signs trade deal with Trump while in Washington for the Board of Peace
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Indonesian leader signs trade deal with Trump while in Washington for the Board of Peace

#Indonesia-US trade deal #Prabowo Subianto #Donald Trump #Board of Peace #Gaza stabilization #Critical minerals #Southeast Asia #Economic security

📌 Key Takeaways

  • Indonesia and US signed reciprocal trade agreement in Washington on February 19, 2026
  • 11 business deals worth $38.4 billion were finalized between Indonesian and US companies
  • Indonesia pledged 8,000 troops for Gaza stabilization force at Board of Peace meeting
  • Cambodia and Vietnam also participated in the Board of Peace inaugural meeting
  • Cooperation on critical minerals represents strategic element of the trade relationship

📖 Full Retelling

Indonesian President Prabowo Subianto signed a reciprocal trade agreement with U.S. President Donald Trump in Washington on Thursday, February 19, 2026, while attending the first meeting of the Trump-led Board of Peace, with the deal aimed at strengthening economic security and promoting growth between the two nations. The agreement builds on a framework trade deal reached last summer, where Indonesia agreed to eliminate tariffs for most American goods while the U.S. would set tariffs on Indonesian goods at 19%, the same rate as for Cambodia and Malaysia. Indonesian and U.S. companies also finalized 11 deals this week worth $38.4 billion, including substantial purchases of U.S. agricultural products like soybeans, corn, cotton, and wheat, as well as 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, with the White House subsequently calling it a 'great deal' that would help both countries strengthen economic security and promote global prosperity. The same day, 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, making Indonesia 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.' Cambodia and Vietnam, the two other Southeast Asian countries that joined the Board of Peace, also sent leaders to Washington for the inaugural meeting, with Cambodia already having inked a trade deal with the U.S. while Vietnam reached a framework agreement. Indonesian companies committed to buying 1 million tons of soybeans, 1.6 million tons of corn and 93,000 tons of cotton from the U.S., with plans to purchase up to 5 million tons of U.S. wheat by 2030. The countries also agreed to cooperate on critical minerals, though specific details were not immediately available, as Washington seeks Indonesia's agreement to lift restrictions on critical mineral exports to safeguard U.S. manufacturers from supply-chain disruptions and defend against China's influence on key elements needed for various industries.

🏷️ Themes

International Trade, Geopolitics, Economic Cooperation, Peace Initiatives

📚 Related People & Topics

Board of Peace

Board of Peace

Organization led by Donald Trump

The Board of Peace (BoP) is an international organization, established by Donald Trump and led by the government of the United States, which has a stated purpose of promoting peacekeeping around the world. It is named in United Nations Security Council Resolution 2803 as a body tasked with overseein...

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Critical raw materials

Critical raw materials

Government views on important raw materials

Critical raw materials (CRM), also referred to as critical materials or critical minerals, are raw materials designated by governments as critical for their economies. There is no single list of such materials, as the list varies from country to country, as does the definition of "critical". Critic...

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Prabowo Subianto

Prabowo Subianto

President of Indonesia since 2024

Prabowo Subianto Djojohadikusumo (born 17 October 1951) is an Indonesian politician, businessman, and retired military officer who has served as the eighth president of Indonesia since 2024. He previously served as the 26th minister of defense under President Joko Widodo from 2019 to 2024. Prabowo i...

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Donald Trump

Donald Trump

President of the United States (2017–2021; since 2025)

Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party, he served as the 45th president from 2017 to 2021. Born into a wealthy New York City family, Trump graduated from the...

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Entity Intersection Graph

Connections for Board of Peace:

👤 Donald Trump 13 shared
🌐 Middle East 4 shared
🌐 Gaza 2 shared
👤 Javier Milei 2 shared
🏢 Diplomacy 2 shared
View full profile

Deep Analysis

Why It Matters

The trade agreement opens markets for both countries and signals a strategic partnership that could influence US-China dynamics. It also ties Indonesia’s economic interests to the US while committing the nation to a Gaza stabilization force.

Context & Background

  • Indonesia is the world’s most populous Muslim country
  • The deal eliminates tariffs on most US goods and sets 19% tariffs on Indonesian goods
  • Indonesia pledged 8,000 troops for a Gaza stabilization force
  • The Board of Peace includes Cambodia and Vietnam

What Happens Next

The agreement will likely lead to increased bilateral trade and joint ventures in critical minerals and technology. Indonesia’s troop commitment may strengthen its role in international peacekeeping and its diplomatic leverage between the US and China.

Frequently Asked Questions

What is the Board of Peace?

A Trump-led initiative aimed at brokering peace in Gaza and other conflicts.

What are the key terms of the trade deal?

Elimination of tariffs on most US goods, 19% tariffs on Indonesian goods, and 11 deals worth $38.4 billion.

How does Indonesia's troop pledge affect Gaza?

Indonesia committed to send 8,000 troops to support an international stabilization force in Gaza.

What is Indonesia’s role in US-China relations?

Indonesia can act as a bridge and honest broker between the two powers.

Original Source
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