U.S., Indonesian Companies Ink $34 Billion Deal

Companies from the United States and Indonesia are expected to sign a memorandum of understanding (MOU) worth $34 billion, including deals involving state energy firm Pertamina, ExxonMobil, and Chevron, Reuters reported, citing government official Ananda Teresia.

The agreement includes state companies like Pertamina. I Photo: Kilang Pertamina Balikpapan

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The agreement will also include purchases of U.S. agricultural products such as soybeans, corn, and cotton, according to Pujo Setio, a senior official at Indonesia’s Ministry of Economics.

The deal follows reports that one of Indonesia’s key trading partners had been hesitant to finalize a broader trade pact, expressing concerns that the agreement might not help reduce its trade deficit.

The U.S., which runs a trade deficit with Indonesia, is one such country. China and India also enjoy trade surpluses with the U.S.

The MOU represents a significant step in strengthening economic ties between Jakarta and Washington, amid shifting global trade dynamics and rising U.S. interest in Southeast Asian markets.