Indonesian leader signs trade deal with Trump while in Washington for the Board of Peace - AP News
AP News
February 19, 2026
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Indonesian President Joko Widodo has signed a significant trade agreement with U.S. President Donald Trump during his visit to Washington for the Board of Peace event. The deal focuses on expanding trade in key sectors such as agriculture, minerals, and energy, including Indonesian exports like palm oil and coal. This move highlights Indonesia's growing economic ties with the United States amid rising tensions between the U.S. and China over trade and regional influence.
The Board of Peace initiative, attended by leaders from Southeast Asian nations, aims to foster cooperation on issues like maritime security and counterterrorism. During his visit, President Widodo emphasized the importance of strengthening partnerships with the U.S. to address challenges in the region. The trade deal is seen as a strategic move to diversify Indonesia's export markets while aligning with broader diplomatic efforts to balance China's influence in Southeast Asia.
The agreement also underscores Indonesia's role as a key player in global supply chains, particularly in commodities like palm oil and minerals. For the U.S., the deal could help reduce reliance on Chinese imports and strengthen economic ties with a major Southeast Asian country. Both leaders expressed optimism about the potential benefits of the partnership, including job creation and economic growth.
This trade agreement is part of a broader push by Indonesia to expand its global trade relationships. It also reflects the administration's focus on leveraging economic diplomacy to build stronger ties with key partners. The deal could have far-reaching implications for both nations, enhancing their strategic collaboration in the Asia-Pacific region.
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Originally published on AP News on 2/19/2026