The White House announced Thursday that the United States and Indonesia reached a reciprocal trade agreement while President Prabowo Subianto attended the inaugural meeting of President Donald Trump’s Board of Peace in Washington.

Under the deal, Indonesia, Southeast Asia’s largest economy, will remove tariffs on 99 percent of American goods, while the U.S. will maintain tariffs on most Indonesian products at 19 percent, matching rates applied to Cambodia and Malaysia. Indonesia also agreed to address non-tariff barriers and lift restrictions on exports of critical minerals and other industrial commodities, enhancing U.S. supply-chain security.

In addition, U.S. and Indonesian companies finalized 11 agreements valued at $38.4 billion, covering purchases of soybeans, corn, cotton, and wheat, as well as cooperation in critical minerals, oil field recovery, and joint ventures in semiconductor production.

“We have negotiated very intensively over the last few months, and I think we have reached solid understandings on many issues,” Prabowo told business leaders at the U.S. Chamber of Commerce. A White House statement called the agreement a “great deal” that will strengthen economic security, promote growth, and support global prosperity. The pact was formally signed by U.S. Trade Representative Jamieson Greer and his Indonesian counterpart.

The announcement coincided with Prabowo reaffirming Indonesia’s commitment to President Trump’s postwar Gaza reconstruction plan, pledging 8,000 troops or more if necessary for an international stabilization force. Trump praised the commitment at the Board of Peace meeting, calling Indonesia “a big country” that “does a great job.” Prabowo, in turn, expressed confidence in Trump’s leadership to achieve lasting peace.

The trade deal also advances U.S. strategic interests, particularly regarding critical minerals. Indonesian companies agreed to purchase up to 5 million tons of U.S. wheat by 2030, and both countries committed to cooperation on key minerals, helping protect American manufacturers from supply disruptions and reducing reliance on China.

Vietnam and Cambodia also participated in the Board of Peace meeting. Vietnam’s leader To Lam visited Washington for the first time since reelection, underscoring the Trump administration’s growing diplomatic influence in Southeast Asia. Meanwhile, ongoing trade discussions between the U.S. and Vietnam continue following the imposition of 20 percent tariffs on Vietnamese exports.

The agreement with Indonesia highlights the Trump administration’s combined approach of expanding American trade opportunities while reinforcing strategic alliances and global economic security.