Indonesia’s President Prabowo Subianto arrived in Washington to attend the inaugural meeting of President Donald Trump’s “Board of Peace,” and the visit quickly folded into a major trade announcement by the White House. In a reciprocal trade agreement announced Thursday, the administration said Indonesia would lower tariffs on U.S. goods while the United States would keep tariffs on most Indonesian products at a specified rate. The deal was framed alongside broader security diplomacy at the same high-profile gathering.
The White House said Indonesia would eliminate tariffs for 99% of American goods, while the U.S. maintained tariffs on most Indonesian goods at 19%. The White House said the U.S. rate matched what it set for Cambodia and Malaysia, linking the Indonesia terms to the administration’s wider approach to tariff relationships in Southeast Asia.
In addition to the tariff figures, the administration said Indonesia agreed to address “non-tariff barriers” affecting U.S. goods. The White House also said Indonesia would remove restrictions on exports to the U.S. for critical minerals and other industrial commodities, an issue the Trump administration has tied to securing U.S. supply chains.
Prabowo told business executives at the U.S. Chamber of Commerce that the negotiations had moved forward quickly and intensively over the preceding months. “We have negotiated very intensively over the last few months, and I think we have reached solid understandings on many issues,” Prabowo said Wednesday to the Chamber of Commerce audience, according to AP’s reporting.
The administration said Indonesian and U.S. companies reached 11 deals this week worth $38.4 billion. Those deals included purchases of U.S. soybeans, corn, cotton and wheat; cooperation in critical minerals; oil-field recovery; and joint ventures in computer chips, with the total value presented as part of the broader trade package.
Late Thursday, the agreement was later signed by U.S. Trade Representative Jamieson Greer and Indonesia’s trade minister, Airlangga Hartarto. Hartarto told a news conference from Washington that both governments cast the agreement as the start of a “new golden age” in bilateral economic ties. He also said Indonesia would introduce measures designed to keep trade flows secure and to prevent misuse of sensitive goods.
The trade deal was announced the same day that Prabowo reiterated Indonesia’s pledge at the Board of Peace meeting regarding Gaza. Indonesia’s leader said Indonesia would send 8,000 troops, or “more if necessary,” for an international stabilization force in Gaza, and AP reported that Indonesia was among the first countries to make a firm commitment to a critical element of Trump’s postwar Gaza reconstruction plan.
At the Board of Peace meeting, Trump thanked Prabowo, saying, “President Prabowo of Indonesia, thank you very much.” Trump said it was “a big country you have, and you do a great job.” Prabowo praised Trump in return, saying, “We are very optimistic with the leadership of President Trump, this vision of real peace will be achieved,” and added, “There will be problems, but we will prevail.”
Cambodia and Vietnam were also part of the Board of Peace lineup for the inaugural meeting in Washington. Cambodia has already inked a trade deal with the U.S., while Vietnam has reached a framework agreement, and Vietnam’s leader, To Lam, made his first visit to the United States since being reelected as head of Vietnam’s ruling Communist Party last month, AP reported.
In the same meeting setting, Trump described Vietnam as “incredible as a country and as a force” and told Lam it was “a really great honor to have you.” AP reported that analysts viewed Lam’s order of travel—visiting the U.S. before going to Beijing—as a shift, while Hanoi described its approach to foreign policy as independent and balanced among major powers.