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WASHINGTON — <\/span>The White House announced a reciprocal trade agreement with Indonesia on Thursday while President Prabowo Subianto was in Washington to attend the first meeting of President Donald Trump’s Board of Peace<\/a>.<\/p>\n Under the agreement, Southeast Asia\u2019s largest economy will eliminate tariffs for 99% of American goods while the U.S. will maintain tariffs on most Indonesian goods at 19%, the White House said. That is the same rate the U.S. has set for Cambodia and Malaysia. Indonesia also agreed to address non-tariff barriers to U.S. goods and to remove restrictions on exports to the U.S. for critical minerals and other industrial commodities, the White House said.<\/p>\n Indonesian and U.S. companies also reached 11 deals this week worth $38.4 billion, including purchases of U.S. soybeans, corn, cotton and wheat, cooperation in critical minerals and oil field recovery, and joint ventures in computer chips.<\/p>\n \u201cWe have negotiated very intensively over the last few months, and I think we have reached solid understandings on many issues,” Prabowo told business executives Wednesday at the U.S. Chamber of Commerce.<\/p>\n A White House statement called it a \u201cgreat deal” and said it \u201cwill help both countries to strengthen economic security, promote economic growth, and thereby continuously lead to global prosperity.\u201d<\/p>\n The agreement was later signed by U.S. Trade Representative Jamieson Greer and his Indonesian counterpart.<\/p>\n The agreement was announced the same day that Prabowo, leader of the world\u2019s most populous Muslim country, reiterated his pledge at the Board of Peace meeting to send 8,000 troops<\/a> or \u201cmore if necessary\u201d for an international stabilization force in Gaza.<\/p>\n Indonesia was among the first to make a firm commitment to a critical element of Trump\u2019s postwar Gaza reconstruction plan<\/a>. <\/p>\n \u201cPresident Prabowo of Indonesia, thank you very much,\u201d Trump said at the Board of Peace meeting. \u201cIt\u2019s a big country you have, and you do a great job.\u201d<\/p>\n Prabowo praised Trump in return. \u201cWe are very optimistic with the leadership of President Trump, this vision of real peace will be achieved,\u201d Prabowo said. \u201cThere will be problems, but we will prevail.\u201d<\/p>\n Cambodia and Vietnam are the two other Southeast Asian countries that joined the board, which was originally envisioned as overseeing the Gaza ceasefire but has taken shape with wider ambitions to broker other global conflicts.<\/p>\n Their leaders also came to Washington for the inaugural meeting. Cambodia has already inked a trade deal with the U.S., while Vietnam has reached a framework agreement<\/a>.<\/p>\n 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 U.S. They also pledged to buy up to 5 million tons of U.S. wheat by 2030.<\/p>\n The countries agreed to cooperate on critical minerals, though details were not immediately available. <\/p>\n Washington is seeking Indonesia\u2019s agreement to lift restrictions on critical mineral exports, which the Trump administration argues could safeguard U.S. manufacturers<\/a> from supply\u2011chain disruptions. The administration has sought to defend against China\u2019s stranglehold<\/a> on the key elements needed<\/a> for everything from fighter jets to smartphones.<\/p>\n At the Chamber of Commerce event, Prabowo said Indonesia can serve as a \u201cbridge\u201d and \u201chonest broker\u201d between great powers, apparently referring to the U.S.-China competition.<\/p>\n At the Board of Peace meeting, Trump called Vietnam \u201cincredible as a country and as a force\u201d and told leader To Lam that it was \u201ca really great honor to have you.”<\/p>\n Lam’s visit to the U.S. is his first since he was reelected<\/a> as the head of Vietnam’s ruling Communist Party last month. Typically, China is an initial stop in a nod to the countries’ ideological ties and Beijing\u2019s status as Vietnam\u2019s largest trading partner. Lam did visit China in August 2024<\/a> before traveling to the U.S. during his first term.<\/p>\n Analysts say Lam’s visit to the U.S. before traveling to Beijing this time around is a notable shift in sequencing. Hanoi describes its foreign policy as independent and balanced among major powers. <\/p>\n Trade negotiations between Vietnam and the United States are ongoing following the Trump administration levying 20% tariffs on Vietnamese exports<\/a>. The latest, sixth round of talks concluded in early February.<\/p>\n ___<\/p>\n Karmini reported from Jakarta, Indonesia, and Ghosal from Hanoi, Vietnam.<\/p>\n ___ <\/p>\n 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. <\/p>\n<\/div>\n