Agreements between US, Indonesian firms in leadup to trade deal

JAKARTA: U.S. President Donald announced a trade agreement with Indonesia that would see Washington lower its tariff rates to 19% from a threatened 32%.

The deal includes increased Indonesian purchases of U.S. airplane, energy and farm products to help offset the nearly $18 billion trade balance in favour of Jakarta.

Here is what we know about the deal so far:

ENERGY

Trump said that the deal includes Indonesia purchasing $15 billion worth of U.S. energy products, without giving specific details.

Indonesian state energy company Pertamina said on Wednesday it had signed memorandums of understanding with several U.S. companies to optimise feedstock and crude oil purchases. The agreements also included exploring collaborations in the refinery sector.

Last week, Reuters reported that the deal would include purchases from U.S. companies Exxon Mobil Corp and Chevron.

AGRICULTURE

Trump also said the deal included $4.5 billion in Indonesian purchases of American agricultural products.

Last week, Indonesia's wheat flour mills association signed an agreement worth around $1.25 billion with U.S. counterparts to buy at least 1 million metric tons of U.S. wheat per year from 2026 until 2030.

Reuters reported exclusively that the deal would include purchases by instant-noodle giant Indofood while U.S. counterparts include Cargill, Bunge Global, Pacificor, Archer-Daniels-Midland, Columbia Grain International, and United Grain Corporation.

The U.S. exported nearly 700,000 tons of wheat to Indonesia in 2024, making it the third-biggest export destination after Australia and Canada, data from a local association showed.

The deal on agriculture purchases also includes soybeans, corn, and cotton, but details on quantities is not yet known.

AVIATION

Indonesia has committed to purchasing 50 Boeing jets, Trump said. He did not provide details of the timeline of the purchases.

It was reported earlier that agreements on the purchase of aircraft would involve state carrier Garuda Indonesia, Garuda's CEO said last week the firm was in talks with U.S. Boeing to buy up to 75 planes, including 737 MAX 8 and 787 jets.