A deal worth $38.4 billion was signed between Indonesia and U.S. companies ahead of Indonesian President Prabowo Subianto’s meeting with U.S. President Donald Trump to sign a final trade pact, the Indonesian government said in a statement.
The 11 deals, signed at a dinner for Prabowo hosted by the U.S. Chamber of Commerce, were for partnerships in mining, energy, agribusiness, textiles, furniture and technology sectors, according to the statement.
Prabowo said the deals were among the implementing agreements to the U.S.-Indonesian trade deal that he is due to sign on Thursday with Trump, adding it would help reduce Indonesia’s trade surplus with the U.S.
Extended Mining Permit
The $38.4 billion valuation was higher than the figure presented earlier in a fact sheet by the U.S.-ASEAN Business Council (USABC) at over $7 billion, which included purchases by Indonesian firms of 1 million metric tons of U.S. soybeans, 1.6 million tons of corn, and 93,000 tons of cotton over unspecified periods.
The council said Indonesia would also buy 1 million tons of wheat this year and up to 5 million tons by 2030.
The deals include a memorandum of understanding between U.S. mining group Freeport-McMoRan and the Indonesian Ministry of Investment for critical minerals cooperation, and an agreement between state oil producer Pertamina and Halliburton Co to cooperate on oilfield recovery, USABC said.
Freeport and the investment ministry signed an initial deal to extend its mining permit beyond 2041, Freeport-McMoRan Chairman Richard Adkerson said.
The deals also include two semiconductor joint venture agreements, one valued at $4.89 billion between Essence Global Group and an Indonesian partner, and another unvalued venture involving Tynergy Technology Group.
Farm Goods
USABC valued Indonesia’s purchases of soybeans at $685 million, wheat at $1.25 billion, cotton at $122 million and an additional purchase of U.S. shredded worn clothing for recycling at $200 million.
The Southeast Asian country has imported around $3 billion worth of U.S. agricultural products annually in recent years, making it the 11th-largest market for all U.S. farm goods.
Indonesia announced in July a string of business deals with the U.S. worth $34 billion as part of its tariff negotiations, including wheat and soybean import purchases similar to those signed on Wednesday.
The Indonesian leader arrived in Washington this week for Trump’s Board of Peace meeting, with hopes Jakarta can secure a slight tariff reduction to 18% from 19% agreed last year. That would match the rate Trump granted to India earlier in February.
(With inputs from Reuters)
