Indonesian and U.S. companies inked agreements valued at $38.4 billion on February 18, setting the stage for Indonesian President Prabowo Subianto’s meeting with President Donald Trump to finalize a bilateral trade accord.
The 11 pacts, covering mining, energy, agribusiness, textiles, furniture, and technology, were signed during a U.S. Chamber of Commerce dinner honoring Prabowo.
“We hope to find partners who are ready to join us in our ongoing efforts to modernise and industrialise,” Prabowo said in remarks at the event, The Straits Times reported.
Prabowo described the agreements as supporting elements of the U.S.-Indonesia trade deal, slated for signing on February 19, noting they would help narrow Indonesia’s trade surplus with the U.S.
“I’m very optimistic about the future of our relationship,” Prabowo added.
The total exceeds a U.S.-ASEAN Business Council fact sheet estimate of over $7 billion, which encompassed Indonesian commitments to buy 1 million metric tons of U.S. soybeans, 1.6 million tons of corn, and 93,000 tons of cotton over unspecified time frames, plus 1 million tons of wheat in 2026 and up to 5 million tons by 2030.
Council valuations included $685 million for soybeans, $1.25 billion for wheat, $122 million for cotton, and $200 million for shredded worn clothing for recycling.
From 2015 to 2024, Indonesia imported an average of 2.3 million metric tons of U.S. soybeans annually, nearly 800,000 tons of wheat, about 180,000 tons of cotton, and less than 100,000 tons of corn, per U.S. Census Bureau data. The country has averaged $3 billion in annual U.S. agricultural imports, ranking as the 11th-largest market for American farm products.
Key agreements featured a memorandum between Freeport-McMoRan and Indonesia’s Investment Ministry on critical minerals, and a Pertamina-Halliburton collaboration for oilfield recovery.
Freeport also reached an initial agreement with the ministry to extend its mining permit beyond 2041.
“It is a life of resource extension, and we cannot wait to undertake delineation drilling of what that ore body will be for many decades to come in the future,” Freeport-McMoRan Chairman Richard Adkerson said at the dinner, per The Straits Times.
Semiconductor ventures included a $4.89 billion joint project with Essence Global Group and an Indonesian counterpart, as well as an unvalued initiative with Tynergy Technology Group.
Undisclosed values applied to deals for U.S. lumber and furniture, as well as a transnational free trade zone between Indonesian developer Galang Bumi Industri and Solanna Group LLC.
This follows Indonesia’s July announcement of $34 billion in U.S. business pacts amid tariff talks, which included similar commitments for wheat and soybeans.
Prabowo visited Washington for Trump’s Board of Peace gathering, seeking a 18% tariff cut from last year’s 19% rate, in line with India’s February concession.
Deputy U.S. Trade Representative Rick Switzer, without specifying the tariff, said the pact “will mean more trade – bilateral trade. It will mean more investment. It’ll mean deeper, more comprehensive economic, investment and trade ties.”
On February 19, Trump and Prabowo met and issued a joint statement affirming their dedication to the Agreement on Reciprocal Trade, pledging to advance its implementation to enhance economic security and drive growth toward global prosperity.
The leaders directed officials to pursue a “NEW GOLDEN AGE” in the U.S.-Indonesia alliance.
