2/20/2026 | USA | politics | ✓ Verified - abcnews.com

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

#Indonesia-US trade deal #Trump Board of Peace #Prabowo Subianto #Critical minerals #Gaza stabilization force #Southeast Asia trade #US tariffs #Economic cooperation

📌 Key Takeaways

Indonesia to eliminate tariffs for 99% of American goods while US maintains 19% tariffs on most Indonesian products
Indonesian and US companies reached 11 deals worth $38.4 billion including agricultural purchases and critical minerals cooperation
Indonesia pledged to send 8,000 troops to international stabilization force in Gaza
Trade agreement aims to strengthen economic security and promote growth between both countries

📖 Full Retelling

Indonesian President Prabowo Subianto announced a reciprocal trade agreement with the United States in Washington on Thursday, February 19, 2026, while attending the first meeting of President Donald Trump's Board of Peace, as the Southeast Asian nation seeks to strengthen economic ties with the world's largest economy. Under the agreement, Indonesia will eliminate tariffs for 99% of American goods while the U.S. will maintain tariffs on most Indonesian goods at 19%, the same rate applied to Cambodia and Malaysia. Indonesia also committed to addressing non-tariff barriers to U.S. goods and removing restrictions on exports of critical minerals and other industrial commodities to the United States. Beyond government-level agreements, Indonesian and U.S. companies reached 11 separate deals worth $38.4 billion, including substantial purchases of U.S. agricultural products such as soybeans, corn, cotton, and wheat, along with cooperation in critical minerals and oil field recovery initiatives. The trade discussions occurred alongside diplomatic efforts at the Board of Peace meeting, where Prabowo reiterated Indonesia's commitment to send 8,000 troops to an international stabilization force in Gaza, positioning the world's most populous Muslim nation as a key participant in Trump's postwar reconstruction plans for the region.

🏷️ Themes

Trade, Diplomacy, Geopolitics

📚 Related People & Topics

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...

View Profile → Wikipedia ↗

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...

View Profile → Wikipedia ↗

Entity Intersection Graph

Connections for Critical raw materials:

👤 Marco Rubio 2 shared

👤 Shehbaz Sharif 1 shared

🌐 Comprehensive strategic partnership 1 shared

🌐 Energy security 1 shared

🏢 Trade bloc 1 shared

View full profile

Deep Analysis

Why It Matters

The trade agreement removes tariffs on 99% of U.S. goods, boosting Indonesia's export potential and strengthening economic ties. It also positions Indonesia as a key partner in U.S. efforts to stabilize Gaza, linking trade and geopolitical influence.

Context & Background

Indonesia is Southeast Asia's largest economy and a major trade partner with the U.S.
The deal eliminates tariffs on 99% of U.S. goods while maintaining a 19% tariff on most Indonesian goods, matching rates for Cambodia and Malaysia.
Indonesia committed to sending troops for an international stabilization force in Gaza as part of Trump's Board of Peace.

What Happens Next

Implementation of tariff reductions will likely increase bilateral trade volume and open new markets for Indonesian exporters. Indonesia may also deepen its role in the Board of Peace, potentially leading to further diplomatic initiatives and trade agreements with other ASEAN members.

Frequently Asked Questions

Which U.S. goods will be tariff-free?

99% of U.S. goods, including soybeans, corn, cotton, wheat and industrial commodities.

What is the 19% tariff on Indonesian goods?

The U.S. will keep a 19% tariff on most Indonesian goods, the same rate applied to Cambodia and Malaysia.

What is the Board of Peace?

A forum led by President Trump to broker conflicts, originally focused on Gaza but expanding to other global disputes.

Who signed the agreement?

The agreement was signed by the U.S. Trade Representative Jamieson Greer and his Indonesian counterpart, not by the presidents themselves.

Original Source

              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 By DIDI TANG Associated Press , NINIEK KARMINI Associated Press , and ANIRUDDHA GHOSAL Associated Press February 19, 2026, 5:55 PM WASHINGTON -- 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. 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...
            

Read full article at source

Source

abcnews.com