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

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

Published on Feb. 27, 2026

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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 countries had reached a framework trade deal last summer, and Indonesian and U.S. companies also reached $38.4 billion in deals this week. Prabowo also reiterated Indonesia's pledge to send 8,000 troops or more for an international stabilization force in Gaza.

Why it matters

The trade deal and Indonesia's commitment to the Gaza stabilization force are seen as strengthening economic and geopolitical ties between the U.S. and the world's largest Muslim-majority country. It also highlights Indonesia's role as a potential 'bridge' between global powers like the U.S. and China.

The details

The trade agreement will eliminate tariffs for most American goods in Indonesia, while the U.S. will set tariffs on Indonesian goods at 19%. Indonesian companies also agreed to buy 1 million tons of U.S. soybeans, 1.6 million tons of corn, 93,000 tons of cotton, and up to 5 million tons of U.S. wheat by 2030. The countries will also cooperate on critical minerals, an area the U.S. is seeking to reduce reliance on China.

  • The trade deal was signed on Thursday, February 20, 2026.
  • Prabowo reiterated Indonesia's pledge for an 8,000-troop Gaza stabilization force at the Board of Peace meeting on the same day.

The players

Prabowo Subianto

The President of Indonesia, the world's largest Muslim-majority country.

Donald Trump

The 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 (U.S. Chamber of Commerce)

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

— Donald Trump, President of the United States (Board of Peace meeting)

“We are very optimistic with the leadership of President Trump, this vision of real peace will be achieved. There will be problems, but we will prevail.”

— Prabowo Subianto, President of Indonesia (Board of Peace meeting)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This deal highlights Indonesia's role as a potential bridge between global powers, as the world's largest Muslim-majority country strengthens economic and security ties with the U.S. amid ongoing U.S.-China competition.