Indonesian Leader Signs Trade Deal with Trump at Board of Peace Meeting

Prabowo Subianto and Donald Trump reach agreement as Indonesia commits troops to Gaza stabilization force

Feb. 27, 2026 at 9:55pm

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Indonesian President Prabowo Subianto signed a reciprocal trade agreement with U.S. President Donald Trump while in Washington to attend the first meeting of the Trump-led Board of Peace. The two countries also reached $38.4 billion in business deals, including purchases of U.S. agricultural products and cooperation in critical minerals. Prabowo also pledged to send 8,000 troops or more to an international stabilization force in Gaza as part of Trump's postwar reconstruction plan.

Why it matters

The trade deal and business agreements strengthen economic ties between the U.S. and Indonesia, the world's fourth most populous country. Indonesia's commitment of troops to the Gaza stabilization force is a significant contribution to Trump's broader Middle East peace initiative, which aims to broker a lasting ceasefire and reconstruction effort in the region.

The details

The trade agreement will eliminate tariffs for most American goods exported to Indonesia, while the U.S. will set tariffs on Indonesian goods at 19%, the same rate as for Cambodia and Malaysia. The $38.4 billion in business deals include purchases of U.S. soybeans, corn, cotton and wheat, as well as cooperation in critical minerals and oil field recovery, and joint ventures in computer chips.

  • On February 19, 2026, Prabowo Subianto signed the trade agreement with Donald Trump.
  • Prabowo attended the first meeting of the Trump-led Board of Peace on the same day.

The players

Prabowo Subianto

The President of Indonesia, the world's fourth most populous country.

Donald Trump

The former President of the United States who convened the Board of Peace meeting.

To Lam

The leader of Vietnam, another Southeast Asian country that joined the Board of Peace.

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What they’re saying

“We have negotiated very intensively over the last few months, and I think we have reached solid understandings on many issues.”

— Prabowo Subianto, President of Indonesia

“The Agreement will help both countries to strengthen economic security, promote economic growth, and thereby continuously lead to global prosperity.”

— White House

“President Prabowo of Indonesia, thank you very much. It's a big country you have, and you do a great job.”

— Donald Trump, Former President of the United States

What’s next

The details of the trade agreement and business deals are expected to be released in the coming days and weeks.

The takeaway

This agreement and Indonesia's commitment to the Gaza stabilization force demonstrate the growing strategic importance of Southeast Asia in global affairs, as the U.S. and other powers seek to strengthen ties with the region amid rising tensions with China.