Trade Minister: Indonesia and Philippines Agree on Barter Trade Worth Rp6.29 Trillion
Jakarta (ANTARA) - The Minister of Trade, Budi Santostar, witnessed the signing of two tripartite barter trade Memoranda of Understanding (MoUs) between Indonesian and Philippine business actors, with potential transactions reaching 350 million US dollars, or approximately Rp6.29 trillion.
Budi emphasised that barter trade serves as a strategic step to address exchange rate fluctuations that are currently pressuring the currencies of both nations. Through barter trade, he stated, Indonesia seeks to maintain trade stability without relying on cash payments in US dollars.
“A well-structured barter trade scheme can serve as a trade instrument amidst global trade uncertainty and current currency pressures. The government is fully committed to providing regulatory guidance and trade facilitation for Indonesian businesses,” Budi said in a statement received in Jakarta on Monday.
According to Budi, this move also serves as an effective instrument to conserve foreign exchange reserves amidst global market uncertainty.
Two tripartite barter trade MoUs, involving three parties each, were signed this Monday. The first MoU is an agreement between Asian Pyrochem Technologies from the Philippines, PT Trade Barte Indonesia, and the Indonesian Garment and Textile Association. The three parties agreed to the exchange of raw abaca fibre for finished textile products, valued at 50 million US dollars per year.
The second MoU involves Asian Pyrochem Technologies, PT Trade Barter Indonesia, and PT Krakatau Global Trading. The three parties agreed to the exchange of steel products for iron ore from the Philippines to meet the production needs of Krakatau Steel, valued at 300 million US dollars per year.
“These two projects demonstrate the commitment of Indonesian and Philippine businesses to provide innovative and mutually beneficial trade solutions. We hope this cooperation can strengthen industrial supply chains and open wider opportunities for cooperation in the future,” said Budi.
In addition to the signing of the MoUs, the Philippine delegation participated in business matching sessions with leading Indonesian exporters and producers. The commodities showcased included building materials and several other flagship Indonesian commodities with significant prospects in the Philippine market.
The economies of Indonesia and the Philippines are noted to have very strong foundations. From January to April 2026, total trade between the two countries reached 4.16 billion US dollars, with a surplus of 2.93 billion US dollars for Indonesia. This value represents a 12.03 per cent increase compared to January-April 2025. Furthermore, regarding exports to the Philippines, Indonesia has shown a brilliant trend with an annual growth rate of 1.63 per cent (2021-2025).
Meanwhile, throughout 2025, total bilateral trade between the two nations reached 12.02 billion US dollars, with a surplus for Indonesia amounting to 8.42 billion US dollars.