Indonesia seals ‘great’ US trade deal, agrees to send 8,000 troops to Gaza
South China Morning Post
by Associated PressFebruary 20, 2026
AI-Generated Deep Dive Summary
Indonesia has finalized a significant trade agreement with the United States, which includes major concessions for American goods while maintaining higher tariffs on Indonesian exports. Under the deal, Indonesia will eliminate tariffs on 99% of U.S. products, addressing non-tariff barriers, and removing export restrictions on critical minerals and industrial commodities. The agreement also includes $38.4 billion in bilateral deals across sectors like agriculture, energy, and technology. Both nations view this as a "great deal" that strengthens economic ties and promotes global prosperity.
The trade pact comes during President Prabowo Subianto's visit to Washington for the first meeting of President Donald Trump’s “Board of Peace.” Indonesia’s participation in this initiative highlights its growing influence in regional and global affairs. The agreement not only benefits U.S.-Indonesia economic relations but also underscores Indonesia’s role as a key player in Southeast Asia, potentially setting a precedent for similar deals with other ASEAN countries.
Additionally, Indonesia has agreed to contribute 8,000 troops to the international stabilization force in Gaza, marking its largest-ever deployment abroad. This move positions Indonesia as a significant actor in global peacekeeping efforts, aligning with U.S. strategic interests in the region. The deal reflects Indonesia’s commitment to regional stability while balancing its economic partnership with the United States.
This agreement is significant for several reasons. It solidifies Indonesia’s position as a pivotal nation in both economic and security contexts, particularly given its influence in ASEAN and its contributions to global peacekeeping. For the U.S., it strengthens trade ties with a key Southeast Asian partner while addressing critical minerals supply chain vulnerabilities. The deal also demonstrates how economic diplomacy can be leveraged to achieve broader foreign policy goals.
Overall, this agreement underscores the strategic importance of Indonesia in both economic and security realms. It not only
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Originally published on South China Morning Post on 2/20/2026