Prabowo-Trump Trade Deal Nears Signing, Markets Brace for Sentiment Boost

JAKARTA, Investortrust.id — President Prabowo Subianto plans to meet US President Donald Trump in the United States to sign a bilateral tariff agreement as both governments finalize legal drafting, a move expected to lift investor confidence after last week’s market selloff.

Foreign Minister Sugiono said discussions were ongoing to align schedules, adding that the meeting could take place in Washington, DC or at Trump’s Mar-a-Lago residence in Florida.

“One of the main agendas is the signing of the Indonesia-US tariff agreement,” Sugiono told reporters at the Presidential Palace complex in Jakarta on Tuesday, Feb 3, 2026.

Sugiono said the agreement would also be accompanied by broader talks on global conditions, including Trump’s Board of Peace initiative, which Indonesia continues to monitor through consultations with other majority-Muslim countries involved in the forum.

Coordinating Economic Affairs Minister Airlangga Hartarto confirmed that negotiations had been completed at the discussion stage and were now in the final phase of legal fine-tuning.

“Negotiations with the United States are essentially finished, and what remains is legal drafting and waiting for a mutually agreed schedule for President Prabowo and President Trump,” Airlangga said in Bogor on Monday, Feb 2, 2026.

Airlangga declined to disclose the agreed tariff levels, citing a non-disclosure agreement, and said details would be announced only after the document was formally signed.

.

Market participants are watching the development closely after the Jakarta Composite Index suffered its steepest weekly drop in years following global index-related pressures and foreign outflows.

Optimism has been reinforced by recent developments in India, where equity markets rallied after Trump announced a trade deal that cut US reciprocal tariffs on Indian goods from 25 percent to 18 percent.

Trump said the India agreement would take effect immediately, prompting a positive response from investors despite questions over congressional approval and the absence of a published legal text.

.

Analysts said the India rally showed how quickly trade clarity can shift sentiment, especially in emerging markets recovering from sharp corrections.

“If Indonesia secures a credible and balanced tariff deal with the US, it could act as a near-term catalyst for risk appetite returning to the market,” one Jakarta-based fund manager said.

The government has stressed that Indonesia’s talks with Washington are focused on trade normalization and do not involve commitments to join the Board of Peace.

.

Indonesia-US trade is valued at tens of billions of dollars annually, far exceeding Indonesia’s trade with countries subject to recent US tariff threats.

Officials said the signing of the agreement would provide greater certainty for exporters and investors at a time when global trade policy remains volatile.