Indonesia and US firms sign trade, investment agreements worth $7 billion
The U.S. ASEAN Business Council reported that Indonesian & U.S. firms signed 'trade and investment agreements worth more than $7 bn? on Wednesday, a day before Indonesian President Prabowo?Subianto meets with U.S. president Donald Trump for a meeting to sign a final deal.
According to a U.S. ASEAN Business Council fact sheet, the agreements were signed during a dinner hosted by U.S. Chamber of Commerce for Prabowo. They include Indonesian companies purchasing 1 million metric tonnes of U.S. corn, 1.6 millions tons of soybeans and 93,000 tons of U.S. cotton over an unspecified period.
Indonesia is expected to buy up to 5,000,000 tons of wheat by 2030.
USABC reported that the deals included a memorandum between U.S. Mining Group Freeport McMoRan, and Indonesian Ministry of Investment for critical minerals collaboration and an agreement between Pertamina, Indonesia's state oil producer and Halliburton Co. to collaborate on oilfield recovery.
There are also two joint venture agreements in the semiconductor industry, one of which is valued at $4.89 Billion between Essence Global Group (a company) and Tynergy Technology Group (another venture without a value).
USABC valued Indonesia's soybean purchases at $685m, wheat at $1.25b, cotton at $12m, and an additional $200m for shredded used clothing from the United States.
According to U.S. Census Bureau data, Indonesia imported 2.3 million tons of U.S. soya beans, almost 800,000 tons wheat, 180,000 tons cotton and less than 100,000 tonnes corn on average per year during the decade between 2015 and 2024.
In recent years, the Southeast Asian nation imported $3 billion worth U.S. agriculture products annually. This makes it the 11th biggest market for U.S. farm products.
Indonesian furniture and lumber products were among the purchases made by Indonesians that did not have a price tag.
Prabowo said at the dinner the deals are among the implementing agreement to the U.S. -Indonesian deal that he will sign with Trump on Thursday. He said that these deals would reduce Indonesia's surplus of trade with the U.S. and added: "I am very optimistic about the future our relationship."
The Indonesian leader, who arrived in Washington for Trump's Board of Peace Meeting this week with the hope that?Jakarta could
Secure a small tariff reduction
The rate was reduced to 18%, from the 19% that was agreed upon last year. This would be the same rate as Trump
India granted a grant
Earlier in February,
In his remarks at the dinner, the Deputy U.S. Trade Rep Rick Switzer did not mention the final rate of tariff for Indonesia. Instead, he said that the Agreement on Reciprocal Trade (ARCT) between the two democracies would "mean more trade -- bilateral commerce." This will lead to more investment. "It will mean more investment, trade and economic ties." (Reporting and editing by Himani Sarkar, Christian Schmollinger and Himani Sakar; Additional reporting by Karl Plume and Stanley Widianto from Washington and Jakarta.
(source: Reuters)
