U.S.-Indonesia Deal: Major Farm, Energy & Aviation Pacts Precede Trade Deal
A flurry of bilateral agreements signals deepening economic ties, as U.S. and Indonesian firms close multi-billion-dollar deals ahead of a broader trade pact. From grains to Boeing jets, this could reshape agri-business and supply chains.
Indonesian firms commit to $4.5billion in U.S. agricultural purchases, including a landmark $1.25billion wheat deal: 1million metric tons annually from 2026 to 2030. Deal participants include American ag giants-Cargill, Bunge, ADM, Columbia Grain, and UGC-plus Indonesian food leader Indofood.
In addition, soybeans, corn, and cotton are in the package, although exact volumes remain undisclosed. This marks a major export opportunity-the U.S. exported nearly 700,000 tons of wheat to Indonesia in 2024, ranking it a top-three market behind Australia and Canada.
Beyond agriculture, deals include $15billion in U.S. energy exports tied to Indonesian state firm Pertamina, covering feedstock, crude oil, and refinery ventures with ExxonMobil and Chevron.
Aviation also sees a boost: Indonesia pledges to buy 50 Boeing jets, with talks hinting at up to 75 wide-body and 737 MAX aircraft for state carrier Garuda Indonesia.
These agreements target Indonesia's $18billion trade surplus over the U.S., and come just ahead of U.S.-Indonesia trade negotiations that will lower tariffs from a threatened 32% to around 19%.
Why it matters for U.S. agriculture:
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Reduces trade imbalance by growing U.S. ag exports
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Strengthens food security in Southeast Asia
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Opens doors for related sectors: energy, aviation, logistics
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Sets groundwork for potential tariff reductions and co-op investment
Outlook:
The success of these agreements depends on translating MoUs into firm contracts. The upcoming trade deal could cement U.S. market share in wheat, soy, corn, cotton-and expand co-op and precision ag collaborations with partners in Indonesia.