Indonesia, Philippines sign US$350 million countertrade deals

Jakarta (ANTARA) - Indonesia and the Philippines' business entities signed two tripartite countertrade memorandums of understanding (MoUs) with a potential transaction value of US$350 million, witnessed by Trade Minister Budi Santoso.

According to him, countertrade is a strategic measure to address exchange rate fluctuations that pressure the currencies of both countries.

Through the agreement, Indonesia strives to maintain trade stability without relying on cash payments in US dollars.

"A well-structured countertrade scheme can be an effective trade instrument amid current global trade uncertainty and currency pressures. The government is fully committed to providing regulatory guidance and trade facilitation for Indonesian businesses," the minister noted in a statement on Monday.

He considered the measure an effective instrument for conserving foreign exchange reserves amid global market instability.

The two tripartite countertrade MoUs were signed on Monday. The first MoU involves Asian Pyrochem Technologies of the Philippines, PT Trade Barter Indonesia, and the Indonesian Garment and Textile Association. The three parties agreed to exchange raw abaca fiber for finished textile products worth US$50 million per year.

Meanwhile, the second MoU is an agreement between Asian Pyrochem Technologies, PT Trade Barter Indonesia, and PT Krakatau Global Trading, involving the exchange of steel products for Philippine iron ore to meet Krakatau Steel’s annual production needs, valued at US$300 million.

"These two projects demonstrate the commitment of Indonesian and Philippine businesses to provide innovative and mutually beneficial trade solutions. We hope this collaboration can strengthen the industrial supply chain and bring more opportunities for broader collaboration in the future," Santoso remarked.

Alongside the MoU signing, the Philippine delegation joined business matching sessions with major Indonesian exporters and producers, featuring building materials and various leading commodities with promising prospects in the Philippine market.

The economies of Indonesia and the Philippines are considered to have strong foundations. From January to April 2026, total trade between the two countries reached US$4.16 billion, with Indonesia recording a surplus of US$2.93 billion.

This value increased by 12.03 percent compared to January to April 2025.

In terms of exports, Indonesia demonstrated a positive trend with an annual growth rate from 2021 to 2025 of 1.63 percent.

Throughout 2025, total bilateral trade between the two countries reached US$12.02 billion, with a surplus of US$8.42 billion for Indonesia.

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Translator: Maria Cicilia, Resinta Sulistiyandari

Editor: Arie Novarina

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