Indonesia and US Agree on Rp116 Trillion in Trade Deals, Including Soybean and Wheat Imports
WASHINGTON — Companies from Indonesia and the United States on Wednesday (18 February) signed trade and investment agreements worth more than US$7 billion (Rp116 trillion). The signing, reported by Reuters, took place at a dinner for President Prabowo Subianto hosted by the US Chamber of Commerce, a day before his scheduled bilateral meeting with US President Donald Trump to sign a final trade deal.
According to data from the US-ASEAN Business Council (USABC), the agreements include significant commitments in the food commodity sector. Indonesia is set to import agricultural raw materials from the United States, including 1 million metric tonnes of soybeans, 1.6 million tonnes of maize, 93,000 tonnes of cotton, and 1 million tonnes of wheat in 2026, with a target of up to 5 million tonnes by 2030.
The USABC valued Indonesia's soybean purchases at US$685 million, wheat at US$1.25 billion, cotton at US$122 million, and an additional purchase of US shredded worn clothing for recycling at US$200 million.
The deals also include a memorandum of understanding between US mining group Freeport-McMoRan and the Indonesian Ministry of Investment for critical minerals cooperation. Freeport and the investment ministry also signed an initial agreement to extend its mining permit beyond 2041, according to Freeport-McMoRan Chairman Richard Adkerson.
Additionally, state oil company Pertamina and Halliburton Co reached an agreement to cooperate on oilfield recovery. Two semiconductor joint venture agreements were also signed, including one valued at US$4.89 billion between Essence Global Group and another involving Tynergy Technology Group.
The Indonesian government subsequently stated that the deals were actually worth US$38.4 billion, covering 11 agreements for partnerships across mining, energy, agribusiness, textiles, furniture and technology sectors.
In the decade from 2015 to 2024, Indonesia averaged annual imports of 2.3 million metric tonnes of US soybeans, nearly 800,000 tonnes of wheat, approximately 180,000 tonnes of cotton, and fewer than 100,000 tonnes of maize. The Southeast Asian nation has imported around US$3 billion worth of US agricultural products annually in recent years, making it the 11th-largest market for all US farm goods.
Prabowo stated at the dinner that the deals were among the implementing agreements for the US-Indonesian trade deal he was due to sign the following day with Trump. The Indonesian leader arrived in Washington for Trump's Board of Peace meeting, with hopes that Jakarta could secure a slight tariff reduction to 18 per cent from the 19 per cent agreed last year — matching the rate Trump granted to India earlier in February.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the collaboration was focused on enhancing national competitiveness through digital innovation, artificial intelligence and the energy transition. He also highlighted the completion of the Agreement on Reciprocal Trade (ART) as a significant milestone in removing trade barriers.
According to data from the US-ASEAN Business Council (USABC), the agreements include significant commitments in the food commodity sector. Indonesia is set to import agricultural raw materials from the United States, including 1 million metric tonnes of soybeans, 1.6 million tonnes of maize, 93,000 tonnes of cotton, and 1 million tonnes of wheat in 2026, with a target of up to 5 million tonnes by 2030.
The USABC valued Indonesia's soybean purchases at US$685 million, wheat at US$1.25 billion, cotton at US$122 million, and an additional purchase of US shredded worn clothing for recycling at US$200 million.
The deals also include a memorandum of understanding between US mining group Freeport-McMoRan and the Indonesian Ministry of Investment for critical minerals cooperation. Freeport and the investment ministry also signed an initial agreement to extend its mining permit beyond 2041, according to Freeport-McMoRan Chairman Richard Adkerson.
Additionally, state oil company Pertamina and Halliburton Co reached an agreement to cooperate on oilfield recovery. Two semiconductor joint venture agreements were also signed, including one valued at US$4.89 billion between Essence Global Group and another involving Tynergy Technology Group.
The Indonesian government subsequently stated that the deals were actually worth US$38.4 billion, covering 11 agreements for partnerships across mining, energy, agribusiness, textiles, furniture and technology sectors.
In the decade from 2015 to 2024, Indonesia averaged annual imports of 2.3 million metric tonnes of US soybeans, nearly 800,000 tonnes of wheat, approximately 180,000 tonnes of cotton, and fewer than 100,000 tonnes of maize. The Southeast Asian nation has imported around US$3 billion worth of US agricultural products annually in recent years, making it the 11th-largest market for all US farm goods.
Prabowo stated at the dinner that the deals were among the implementing agreements for the US-Indonesian trade deal he was due to sign the following day with Trump. The Indonesian leader arrived in Washington for Trump's Board of Peace meeting, with hopes that Jakarta could secure a slight tariff reduction to 18 per cent from the 19 per cent agreed last year — matching the rate Trump granted to India earlier in February.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the collaboration was focused on enhancing national competitiveness through digital innovation, artificial intelligence and the energy transition. He also highlighted the completion of the Agreement on Reciprocal Trade (ART) as a significant milestone in removing trade barriers.