Indonesian and US companies signed deals worth $38.4 billion ahead of a Prabowo–Trump meeting, covering mining, energy, agriculture, and semiconductors.
Indonesia pledged increased US wheat purchases and expanded cooperation on critical minerals and oil field recovery.
Jakarta expects reciprocal tariffs to be reduced to 18% from 19%, potentially bringing them on par with India.
Indonesia–US Deals Worth $38.4 Billion Signed; Jakarta Seeks Tariff Relief to 18%
Indonesian and American companies sealed $38.4 billion in agreements across mining, energy, agriculture and semiconductors
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Ahead of a meeting between Indonesian President Prabowo Subianto and US President Donald Trump, Indonesian and American companies signed deals worth $38.4 billion on Wednesday.
In a government statement released by Indonesia, 11 deals were signed at a dinner for Prabowo hosted by the US Chamber of Commerce, reports said.
"We hope to find partners who are ready to join us in our ongoing efforts to modernize and industrialize," Prabowo said.
The deals were signed under the Indonesia–US agreement, and Prabowo added that they would reduce Jakarta’s trade surplus with Washington. "I'm very optimistic about the future of our relationship," he said.
The US-ASEAN Business Council stated that the valuation of the deals was higher than expected at over $7 billion.
The Council said that Indonesia would also buy 1 million tons of wheat this year and up to 5 million tons by 2030. Indonesia has imported around $3 billion worth of US agricultural products annually in recent years, making it one of the largest markets for US agricultural products.
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The deals cover various sectors, including mining, energy, and agriculture. As per a report by Reuters, the agreement included a memorandum of understanding (MoU) between US mining group Freeport-McMoRan and the Indonesian Ministry of Investment for critical minerals cooperation.
It also includes an agreement between state-run oil company Pertamina and Halliburton Co. to explore and collaborate on oil field recovery, the report said, citing the Council. The mining ministry and Freeport have signed a deal to extend its permit beyond 2041, Freeport-McMoRan Chairman Richard Adkerson said.
On semiconductors and technology, the deal includes agreements on a semiconductor joint venture worth $4.89 billion between Essence Global Group and an Indonesian partner. Another joint venture, whose valuation was not disclosed, involved Tynergy Technology Group.
In July, Indonesia announced a slew of business deals with the US worth $34 billion as part of its tariff negotiations. Indonesia expects reciprocal tariffs to be reduced marginally to 18% from 19% agreed last year. If that happens, the tariff rate will come on par with India.
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The Southeast Asian country was one of the first to strike a deal with Washington after the reciprocal tariffs were announced.