Indonesian Political, Business & Finance News

Presidents Prabowo and Trump Officially Sign Reciprocal Trade Agreement at 19% Tariff

| Source: VIVA Translated from Indonesian | Trade
Presidents Prabowo and Trump Officially Sign Reciprocal Trade Agreement at 19% Tariff
Image: VIVA

Washington DC — President Prabowo Subianto and United States President Donald Trump officially signed a trade agreement in Washington DC on Thursday, 19 February 2026 local time.

The agreement marks a reciprocal tariff arrangement of 19 per cent on a number of Indonesian products destined for the US market.

“Today, this morning the President directly signed the cooperation — the Agreement on Reciprocal Trade — which was jointly signed by both President Prabowo and President Donald Trump during a bilateral meeting between the two leaders that lasted approximately 30 minutes following the Board of Peace event,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at a press conference.

Following the signing by both heads of state, the technical documents and annexes of the Agreement on Reciprocal Trade were referred for further discussion at the Office of the United States Trade Representative (USTR).

“All investment and trade matters between Indonesia and the United States will be discussed first should there be increases deemed excessively high or matters considered capable of disrupting the trade balance of both nations,” he said.

Airlangga explained that the trade agreement between Indonesia and the United States was the result of lengthy negotiations since Donald Trump’s announcement in April 2025.

The Indonesian government had sent four official letters throughout 2025, and 90 per cent of its proposals were approved by the United States.

“This agreement differs from other countries’ reciprocal trade agreements because the US agreed to remove non-economic clauses, such as cooperation on nuclear reactors, defence, and security, so the agreement is purely focused on trade,” Airlangga explained.

Furthermore, Airlangga stated that the trade agreement aims to realise shared economic prosperity, robust supply chains, and mutual respect for each nation’s sovereignty.

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