Business entities from Indonesia and the Philippines signed two tripartite countertrade memorandums of understanding (MoUs), with an estimated transaction value of US$350 million, observed by Trade Minister Budi Santoso.
He believes countertrade is a tactical approach to manage exchange rate variations that affect the currencies of both nations.
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Under the agreement, Indonesia aims to ensure trade stability without depending on cash transactions in US dollars.
He viewed the measure as a useful tool for preserving foreign exchange reserves during global market turbulence.
The two tripartite countertrade agreements were signed on Monday. The initial MoU includes Asian Pyrochem Technologies from the Philippines, PT Trade Barter Indonesia, and the Indonesian Garment and Textile Association. The three parties consented to trade raw abaca fiber for completed textile products valued at US$50 million annually.
"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 notes.
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Simultaneously, the second MoU involves an arrangement among Asian Pyrochem Technologies, PT Trade Barter Indonesia, and PT Krakatau Global Trading, focusing on trading steel products for Philippine iron ore to satisfy Krakatau Steel’s yearly production requirements, appraised 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 remarks.
In addition to the MoU signing, the Philippine delegation participated in business matching sessions with key Indonesian exporters and producers, showcasing building materials and various top commodities that have strong potential in the Philippine market.
The economies of Indonesia and the Philippines are viewed as having robust foundations. Between January and April 2026, the overall trade between the two nations amounted to US$4.16 billion, and Indonesia had a surplus of US$2.93 billion.
This figure rose by 12.03 percent in comparison to January through April 2025. Indonesia showed a favorable trend regarding exports, with an annual growth rate of 1.63 percent from 2021 to 2025.
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In 2025, bilateral trade between the two nations amounted to US$12.02 billion, resulting in a surplus of US$8.42 billion for Indonesia.