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Indonesian and Philippine companies signed countertrade agreements Monday with a combined potential value of up to $350 million
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Move aims to reduce dependence on the US dollar amid currency volatility and global economic uncertainty
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One agreement involves the exchange of Philippine raw abaca fiber for Indonesian textile products, valued at about $50 million annually
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A second deal covers the exchange of Philippine iron ore for Indonesian steel products, with an estimated annual value of $300 million
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Countertrade seen as a tool to preserve foreign-exchange reserves during market volatility
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Bilateral trade hit $4.16 billion in Jan–Apr 2026, up 12.03% year-on-year; Indonesia ran a $2.93 billion surplus
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Full-year 2025 bilateral trade reached $12.02 billion; Indonesia’s surplus stood at $8.42 billion
Indonesian and Philippine companies signed countertrade agreements Monday with a combined potential value of up to $350 million, as businesses in both countries move to reduce reliance on the US dollar in the face of sharp currency swings and deepening global economic uncertainty.
The memorandums of understanding on countertrade arrangements were inked in Jakarta in the presence of Indonesian Trade Minister Budi Santoso, as reported by Indonesian dailies.
Santoso said barter-based trade could serve as a viable alternative mechanism for sustaining commerce when exchange-rate volatility makes dollar-denominated transactions costly or impractical.
“A well-structured countertrade scheme can become an important trade instrument amid global trade uncertainty and current currency pressures. The government is fully committed to providing regulatory guidance and facilitating trade for Indonesian businesses,” he said.
The trade minister added that such arrangements could also help conserve foreign-exchange reserves amid heightened turbulence in global financial markets.
Two separate agreements were concluded at the ceremony. The first, involving Philippine company Asian Pyrochem Technologies, Indonesia’s Trade Barter Indonesia, and the Indonesian Garment and Textile Association, calls for raw abaca fiber from the Philippines to be exchanged for finished Indonesian textile products, with transactions estimated at approximately $50 million annually.
The second agreement, among Asian Pyrochem Technologies, Trade Barter Indonesia, and Krakatau Global Trading, covers the exchange of steel products for Philippine iron ore to support the production requirements of state-linked steelmaker Krakatau Steel. That arrangement carries an estimated annual value of $300 million.
“These two projects demonstrate the commitment of Indonesian and Philippine businesses to develop innovative and mutually beneficial trade solutions. We hope this cooperation will strengthen industrial supply chains and create broader opportunities for future collaboration,” Santoso said.
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Alongside the signing ceremony, members of the Philippine delegation held business-matching sessions with Indonesian exporters and manufacturers, with discussions spanning construction materials and a range of Indonesian goods with strong market potential in the Philippines.
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The agreements come against a backdrop of robust and growing bilateral trade. In the first four months of 2026, two-way trade between the neighboring Southeast Asian economies reached $4.16 billion, a 12.03% increase from the same period a year earlier, with Indonesia recording a surplus of $2.93 billion, based on government data.
For the full year 2025, total bilateral trade amounted to $12.02 billion, with Indonesia posting a $8.42 billion surplus. Indonesian exports to the Philippines grew at an average annual rate of 1.63% between 2021 and 2025.
