Prabowo’s Diplomacy Boosts Indonesia Trade Deals: US, EU, Canada & Eurasia

Jakarta, Indonesia – Indonesian Trade Minister Budi Santoso affirmed Friday that President Prabowo Subianto’s diplomatic efforts have expedited key trade agreements, including a recently finalized reciprocal tariff arrangement with the United States. The deal, signed in Washington, D.C., on Thursday, is projected to significantly increase Indonesian exports.

“President Prabowo’s diplomacy is excellent, his presence on the international stage is very strong. Many trade agreements are being finalized quickly because of him,” Santoso told reporters at the Ministry of Trade in Jakarta.

The agreement with the U.S. Establishes a 19 percent reciprocal tariff structure, according to the Trade Minister. Beyond the U.S. Deal, Indonesia has also concluded negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), the Indonesia-Canada CEPA, and the Indonesia-Eurasia Free Trade Agreement (FTA), all attributed to Prabowo’s diplomatic initiatives.

“The IEU-CEPA was finally concluded thanks to his effective diplomacy. The same goes for the I-Eurasia FTA, the agreement between Indonesia and Canada, and most recently, the U.S. Deal. These have moved fast and yielded excellent results,” Santoso remarked.

The rapid completion of these trade agreements, Santoso explained, presents two primary opportunities for Indonesia: attracting foreign direct investment and expanding export markets. Increased market access is expected to bolster Indonesia’s competitiveness and drive export growth, particularly in the manufacturing sector.

“If they invest and produce competitive goods, especially manufactured products, our exports will increase rapidly,” the minister stated.

The U.S.-Indonesia trade developments follow an earlier commitment of $38.4 billion in trade and investment across various sectors, agreed upon by both nations. This commitment was formalized at the 2026 US-Indonesia Business Summit in Washington, D.C., co-hosted by the US Chamber of Commerce, the US-ASEAN Business Council, and the US-Indonesia Society on Wednesday, February 18.

Recent reports indicate Indonesia’s exports to the U.S. Have already seen a substantial increase, jumping 16.66 percent and contributing to a record trade surplus. However, discussions regarding U.S. Tariffs on Indonesian goods were previously reported to be facing challenges, a claim Indonesia has denied.

The 19% tariffs from the U.S. Went into effect Friday, February 20, 2026, with the Indonesian government expressing optimism about potential gains despite the new levies.