Washington– The White House announced a reciprocal trade agreement with Indonesia on Thursday, while President Prabowo Subianto was in Washington for the first meeting with President Donald Trump. Peace Council.
The White House said that under the agreement, Southeast Asia’s largest economy will eliminate tariffs on 99% of US goods while the United States will keep tariffs on most Indonesian goods at 19%. This is the same rate set by the United States for Cambodia and Malaysia. Indonesia also agreed to address non-tariff barriers to U.S. goods and remove restrictions on exports to the United States related to critical minerals and other industrial goods, the White House said.
Indonesian and American companies also reached 11 deals this week worth $38.4 billion, including purchases of soybeans, corn, cotton and wheat from the United States, cooperation on critical minerals and oilfield recovery, and joint ventures in computer chips.
“We have negotiated very intensely over the past few months, and I think we have reached solid understandings on many issues,” Prabowo told business officials Wednesday at the U.S. Chamber of Commerce.
A White House statement described the agreement as a “great deal” and said it “will help the two countries enhance economic security, promote economic growth, and thus continually lead to global prosperity.”
The agreement was later signed by US Trade Representative Jamison Greer and his Indonesian counterpart.
The agreement was announced on the same day that Prabowo, the leader of the most populous Muslim country, repeated his pledge at a peace council meeting to Send 8000 soldiers Or “more if necessary” to form an international force to stabilize Gaza.
Indonesia was among the first countries to strictly adhere to a crucial element of post-war Gaza under Trump Reconstruction plan.
“Indonesian President Prabowo, thank you very much,” Trump said at the peace council meeting. “It’s a big country, and you’re doing a great job.”
Prabowo praised Trump in return. “We are very optimistic that with President Trump’s leadership, this vision of true peace will be achieved,” Prabowo said. “There will be problems, but we will prevail.”
Cambodia and Vietnam are the other two Southeast Asian countries to join the council, which was originally envisioned to oversee a ceasefire in Gaza but took shape with broader ambitions to mediate other global conflicts.
Their leaders also came to Washington to attend the inaugural meeting. Cambodia has already signed a trade agreement with the United States Vietnam has reached a framework agreement.
Indonesian companies agreed this week to buy 1 million tons of soybeans, 1.6 million tons of corn and 93,000 tons of cotton from the United States, and also pledged to buy up to 5 million tons of American wheat by 2030.
The two countries agreed to cooperate in the field of important minerals, although details were not immediately available.
Washington is seeking Indonesia’s agreement to lift restrictions on exports of critical minerals, something the Trump administration says can be done Protecting American manufacturers of supply chain disruptions. The administration has sought to defend against Choking China on Basic elements needed For everything from fighter jets to smartphones.
At the event held by the Chamber of Commerce, Prabowo said Indonesia could serve as a “bridge” and “honest broker” between the great powers, in an apparent reference to the rivalry between the United States and China.
At the peace council meeting, Trump called Vietnam “an incredible country as a powerhouse” and told Leader To Lam that it was “a really great honor to have you with us.”
Lam’s visit to the United States is his first since then He was re-elected As president of Vietnam’s ruling Communist Party last month. China is usually a first stop in reference to the ideological ties between the two countries and Beijing’s status as Vietnam’s largest trading partner. Lam visited China in August 2024 Before traveling to the United States during his first term.
Analysts say Lam’s visit to the United States before traveling to Beijing this time represents a notable shift in the sequence. Hanoi describes its foreign policy as independent and balanced among the major powers.
Trade negotiations between Vietnam and the United States continue in the wake of the Trump administration Imposing a 20% tariff on Vietnamese exports. The latest sixth round of talks concluded in early February.
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Carmini reported from Jakarta, Indonesia, and Ghosal reported from Hanoi, Vietnam.
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This story has been corrected to reflect that the presidents announced the deal but did not sign it. It was later signed by their representatives.