Prabowo and Trump Sign Trade Agreement Following Board of Peace Summit
President Prabowo Subianto signed an import tariff agreement with United States President Donald Trump. The document, which is set to reshape the economic relationship between Indonesia and the United States, was signed in Washington D.C. on Thursday, 19 February 2026 local time.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the signing was carried out directly by both leaders. "It was signed jointly, by both President Prabowo and President Donald Trump," Airlangga said during an online press conference on Friday, 20 February 2026.
The signing of the trade agreement between Prabowo and Trump took place following the inaugural meeting of the Board of Peace in the US capital. During the meeting of the body pioneered by Trump, Prabowo expressed his commitment to supporting the Board of Peace.
According to Airlangga, the trade agreement document signed by Prabowo and Trump is titled "Toward a New Golden Age for the US-Indonesia Alliance."
Airlangga said the trade deal was the result of lengthy negotiations since Trump announced import tariffs on numerous countries, including Indonesia, in April 2025. The agreed trade pact will take effect no later than 90 days after the completion of legal processes in each country.
Under the trade agreement, 1,819 Indonesian agricultural and industrial products will receive zero-tariff or duty-free access to the US market. These include palm oil, coffee, cocoa, spices, rubber, electronics including semiconductors, and aircraft components. The United States will also grant zero tariffs on textile and apparel products through a Tariff Rate Quota (TRQ) mechanism.
In addition, the US will reduce reciprocal tariffs on Indonesian products from 32 per cent to 19 per cent. Indonesia, in turn, has committed to eliminating import duties on the majority of American products. Both nations also agreed to establish a Council of Trade and Investment as a follow-up to the Agreement of Reciprocal Trade. This forum will serve as the primary coordination body for discussing trade and investment issues, including risk mitigation in the event of surges in value or barriers that could disrupt the trade balance between the two countries.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the signing was carried out directly by both leaders. "It was signed jointly, by both President Prabowo and President Donald Trump," Airlangga said during an online press conference on Friday, 20 February 2026.
The signing of the trade agreement between Prabowo and Trump took place following the inaugural meeting of the Board of Peace in the US capital. During the meeting of the body pioneered by Trump, Prabowo expressed his commitment to supporting the Board of Peace.
According to Airlangga, the trade agreement document signed by Prabowo and Trump is titled "Toward a New Golden Age for the US-Indonesia Alliance."
Airlangga said the trade deal was the result of lengthy negotiations since Trump announced import tariffs on numerous countries, including Indonesia, in April 2025. The agreed trade pact will take effect no later than 90 days after the completion of legal processes in each country.
Under the trade agreement, 1,819 Indonesian agricultural and industrial products will receive zero-tariff or duty-free access to the US market. These include palm oil, coffee, cocoa, spices, rubber, electronics including semiconductors, and aircraft components. The United States will also grant zero tariffs on textile and apparel products through a Tariff Rate Quota (TRQ) mechanism.
In addition, the US will reduce reciprocal tariffs on Indonesian products from 32 per cent to 19 per cent. Indonesia, in turn, has committed to eliminating import duties on the majority of American products. Both nations also agreed to establish a Council of Trade and Investment as a follow-up to the Agreement of Reciprocal Trade. This forum will serve as the primary coordination body for discussing trade and investment issues, including risk mitigation in the event of surges in value or barriers that could disrupt the trade balance between the two countries.