Source: Zerno On-Line (Russia)
Indonesia US trade agreement negotiations have yielded results as companies signed deals worth more than $7 billion. Moreover, this occurred ahead of the signing of a comprehensive trade agreement by Presidents Prabowo Subianto and Donald Trump, Reuters reports, citing the US-ASEAN Business Council (USABC).
Indonesia US Trade Agreement: Agricultural Purchase Commitments
Indonesia intends to purchase soybeans, corn, wheat, cotton, and wood products from the US. Furthermore, the agreements, signed at a dinner hosted by the US Chamber of Commerce, include purchases by Indonesian firms of:
- 1 million tons of US soybeans ($685 million)
- 1.6 million tons of corn
- 93,000 tons of cotton ($122 million) over an indefinite period
Additionally, Indonesia will purchase 1 million tons of wheat this year and up to 5 million tons by 2030 (worth $1.25 billion).
Indonesia US Trade Agreement: Mining and Technology Deals
The agreements include a memorandum of understanding between the US government, the Freeport-McMoRan mining group, and the Indonesian Ministry of Investment. Meanwhile, a cooperation agreement in the field of mineral extraction was also signed. Furthermore, an agreement between the state oil producer Pertamina and Halliburton Co. on cooperation in oil production at fields was finalized.
Next are two agreements on joint semiconductor production. Specifically, one worth $4.89 billion between Essence Global Group and an Indonesian partner stands out.
Presidential Visit and Tariff Goals
The Indonesian leader arrived in Washington to attend a meeting of Trump’s Peace Council. Consequently, he hoped that Jakarta would be able to achieve a small reduction in tariffs — to 18% from the 19% agreed last year.
