Troops for Trade: Prabowo's Bold Play in Washington

Troops for Trade: Prabowo's Bold Play in Washington

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Gotrade News - Prabowo Subianto touched down in Washington this week with a strategic curveball for Donald Trump’s administration. The Indonesian President is committing 8,000 peacekeepers to Gaza during the inaugural Board of Peace meeting.

This diplomatic maneuver isn't just about humanitarian aid; it’s a gateway for high-stakes economic negotiations. Nailing this meeting could unlock a trade deal capable of quadrupling Indonesia’s exports to the US.

Key Takeaways:

  • Prabowo is the only leader at the Board of Peace putting actual boots on the ground.

  • The mission aims to secure a trade pact to reduce economic reliance on China.

  • A successful deal could crack open the US market for Indonesia's agriculture and critical minerals.

Prabowo is playing a balancing act between Chinese and American influence in an increasingly tight Southeast Asia. Piper Campbell, former US Mission head to ASEAN, notes this strategy aims to keep America engaged.

Trump’s National Defense Strategy currently prioritizes the Western Hemisphere as the main event for foreign policy. This shift has sparked jitters across Southeast Asia as Beijing flexes its military muscles in the Indo-Pacific.

Indonesian officials confirmed a one-on-one meeting is on the schedule for the two leaders this Thursday (19/02). However, the White House suggested it might just be a quick "pull-aside" during the Board of Peace event.

The visit also serves as damage control regarding Washington’s concerns over Jakarta’s recent cozying up to Beijing. Indonesia notably pursued Chinese J-10 fighter jets and joined the BRICS economic bloc just last year.

Successfully wooing Trump could smooth out the details of a trade deal that exporters are desperate for. Projections suggest this pact could boost Indonesia’s export value to the US by up to four times.

Diversifying export markets is critical to cutting Indonesia's heavy economic dependence on a dominant China. State news agencies reported exports to Beijing hit $58 billion in the first 11 months of 2025.

Scot Marciel, a former US ambassador, views Prabowo’s move as a proactive shield for the national economy. The goal is ensuring Indonesia doesn't become a primary target when Trump starts throwing tariffs around.

This trade deal would blow the doors wide open for Indonesian agricultural imports entering the US market. It could also significantly expand US access to Indonesia’s massive reserves of nickel and copper.

Sending troops brings significant domestic political risk for Prabowo’s administration back home. Critics worry the move looks soft on Israel if the forces fail to protect Palestinian civilians.

The government is working overtime to assure the public that the troops are strictly for humanitarian roles. Prabowo reportedly vowed to walk away if the board fails to push for Palestinian independence.

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Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.


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