Agreements between US, Indonesian firms in leadup to trade deal
The deal includes increased Indonesian purchases of U.S. airplane, energy and farm products to help offset the nearly $18 billion trade balance in favour of Jakarta.
Here is what we know about the deal so far:
Trump said that the deal includes Indonesia purchasing $15 billion worth of U.S. energy products, without giving specific details.
Indonesian state energy company Pertamina [RIC:RIC:PERTM.UL] said on Wednesday it had signed memorandums of understanding with several U.S. companies to optimise feedstock and crude oil purchases. The agreements also included exploring collaborations in the refinery sector.
Last week, Reuters reported that the deal would include purchases from U.S. companies Exxon Mobil Corp (XOM.N), opens new tab and Chevron (CVX.N), opens new tab.
Trump also said the deal included $4.5 billion in Indonesian purchases of American agricultural products.
Last week, Indonesia's wheat flour mills association signed an agreement worth around $1.25 billion with U.S. counterparts to buy at least 1 million metric tons of U.S. wheat per year from 2026 until 2030.
Reuters reported exclusively that the deal would include purchases by instant-noodle giant Indofood (INDF.JK), opens new tab while U.S. counterparts include Cargill [RIC:RIC:ABNO.UL], Bunge Global SA (BG.N), opens new tab, Pacificor, Archer-Daniels-Midland (ADM.N), opens new tab, Columbia Grain International, and United Grain Corporation.
The U.S. exported nearly 700,000 tons of wheat to Indonesia in 2024, making it the third-biggest export destination after Australia and Canada, data from a local association showed.
The deal on agriculture purchases also includes soybeans, corn, and cotton, but details on quantities is not yet known.
Indonesia has committed to purchasing 50 Boeing (BA.N), opens new tab jets, Trump said. He did not provide details of the timeline of the purchases.
It was reported earlier that agreements on the purchase of aircraft would involve state carrier Garuda Indonesia (GIAA.JK), opens new tab. Garuda's CEO said last week the firm was in talks with U.S. Boeing to buy up to 75 planes, including 737 MAX 8 and 787 jets.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
21 minutes ago
- Reuters
Partisan rancor in Congress raises risk of US government shutdown this fall
WASHINGTON, July 31 (Reuters) - Growing Democratic rancor in the U.S. Congress over President Donald Trump's tactics on the federal budget is threatening the long legislative tradition of funding the government through bipartisan deals, while raising the risk of a partial shutdown this fall. Republicans stirred the Democrats' distrust by clawing back $9 billion of congressionally approved money at the White House's behest and discussing making further such rescissions. Some hardline Republicans have floated the unprecedented idea of bypassing Senate rules requiring 60 of the 100 members to agree on most legislation to pass a funding bill for the fiscal year beginning October 1 without any Democratic votes. "Republicans in Congress are bowing down to Donald Trump and ratifying some of his worst efforts," Democratic Senator Elizabeth Warren said in a floor speech outlining her unwillingness to cooperate on government funding without a Republican agreement not to rescind the money later. "The Trump administration is saying, loud and clear, Donald Trump makes all the decisions." The budgeting process has long been strained. For almost three decades lawmakers have failed to pass the 12 bills that are meant to detail the government's discretionary spending and the government has partially shut down 14 times since 1981 as lawmakers have missed deadlines. The annual battle over discretionary spending involves less than a third of the roughly $6.75 trillion federal budget, with funding for programs like building roads and supporting schools. The rest is mandatory spending including Social Security, Medicare and roughly $1 trillion of financing costs for the nation's $36 trillion in debt. As the Senate prepares to leave Washington for a month-long summer recess, Republicans have also hardened their rhetoric about government funding by trying to blame any future shutdown on Senate Democratic leader Chuck Schumer and House Democratic leader Hakeem Jeffries. "If we end up with a Schumer shutdown at the end of the year, the Democrats are going to own that," Senate Majority Leader John Thune told a news conference. The last government shutdown, which stretched over 35 days from late 2018 into early 2019, occurred during Trump's first term in office. Polling at the time showed that voters blamed Republicans for the disruption. The task of keeping the government funded has historically fallen to bipartisan negotiators to find deals that can pass the House of Representatives and garner the 60 votes needed to approve most legislation in the Senate. "Budgeting is hard. Budgeting is governing. And the way things have been so politicized and partisanized, it makes it almost impossible for Congress to legislate effectively," said William Hoagland, a former Senate Republican aide and fiscal legislation veteran who is now at the Bipartisan Policy Center think tank. This time around, the challenge has been complicated by the aggressive tactics of Trump budget director Russell Vought, who has withheld funding appropriated by Congress, succeeded in getting Republicans to defund Democratic priorities including the Corporation for Public Broadcasting and threatened to use so-called pocket rescissions to withhold other allocated funds. Trump has also proposed a fiscal 2026 budget that calls for $163 billion in spending cuts. "We all want to pursue a bipartisan, bicameral appropriations process," Schumer told reporters. "The Republicans are making it extremely difficult to do that." Hardline conservative House Republicans have been discussing the possibility of setting a new precedent for partisanship by using the parliamentary process known as budget reconciliation to pass full-year 2026 funding legislation to reopen government agencies at lower spending levels in the event of a shutdown. The tactic was most recently used to pass Trump's sweeping tax-cut and spending bill earlier this month. Democrats also used it under President Joe Biden to pass his domestic agenda. "It's not a serious discussion yet. But it might be as we get closer to September 30," said Representative Andy Harris, chair of the ultraconservative House Freedom Caucus. Thune and House Speaker Mike Johnson, who has floated the possibility of further reconciliation packages, said they have not considered the idea. Some traditional-minded Republicans have rejected it out of hand. "That's a bad idea," House Appropriations Committee Chairman Tom Cole said. "It means everything has to be partisan all the time. Appropriations, historically, is bipartisan." But hardliners who have seen their demands for deep spending cuts frustrated over the years say Republicans could need an alternative to the usual bipartisan path. "We'd all prefer that you do the appropriations process. So, we should keep trying to get that done. But if we can't, and we have to look at something else, we'll look at something else," said Representative Jim Jordan, a leading hardliner. "Whether we'll do that or not, I don't know. But it's already happened," the Ohio Republican said when asked about reconciliation as a way to reopen shuttered federal agencies. Experts say using reconciliation as a vehicle to reopen shuttered federal agencies may not be feasible, given that Congress would first need to pass a budget resolution that could take weeks or even months to craft. But hardliners say they are aware of that issue. "It's hard to do reconciliation at the last minute. That's the problem," said Representative Warren Davidson. Asked if the potentially long lead time ruled out its use, the Ohio Republican replied: "I hope not. We're trying to make sure it doesn't die."
Reuters
22 minutes ago
- Reuters
Brazil sees 35.9% of exports to US facing steeper tariff, sources say
BRASILIA, July 31 (Reuters) - Brazil estimates that 35.9% of its exports to the United States, by value, will be hit by a steep 50% tariff under an executive order issued on Wednesday by the Trump administration, two sources familiar with the matter told Reuters. According to the sources, who spoke on condition of anonymity, the Ministry of Development, Industry, Trade and Services, which is leading trade negotiations with the U.S., is expected to unveil the figure later in the day. Trump slapped the 50% tariff to fight what he has called a "witch hunt" against former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies. The Brazilian government will also report that another 44.6% of local products will be subject to the preexisting 10% tariff, while the remaining 19.5% will fall under tariffs the U.S. applies globally, ranging from 25% to 50%, added the sources. The MDIC did not immediately respond to a request for comment.
The Independent
23 minutes ago
- The Independent
Trump warns Putin's right-hand man: ‘You're entering very dangerous territory'
Donald Trump issued a stern warning to 'failed' former Russian President Dmitry Medvedev and urged him to 'watch his words' after he ridiculed the U.S. president on social media. ' Russia and the USA do almost no business together,' Trump said in a midnight Truth Social tirade, after attacking India's close ties with Russia and setting his sights on Medvedev. 'Let's keep it that way, and tell Medvedev, the failed former President of Russia, who thinks he's still President, to watch his words. He's entering very dangerous territory!,' he added Medvedev, who was handpicked by Vladimir Putin to serve as president in 2008 due to term limits, ridiculed Trump's recent ultimatum demanding Russia agree to a ceasefire in Ukraine. During his trip to Turnberry, Scotland, on Monday, the president said that Putin must agree to make progress toward ending the war in Ukraine within '10 or 12 days from today,' shortening it from a 50-day negotiating window. Hours later, Medvedev issued an equally scathing response on X to Trump, who repeatedly promised on the 2024 presidential campaign trail to end Russia's offensive in Ukraine on his first day in office. 'Trump's playing the ultimatum game with Russia: 50 days or 10… He should remember 2 things,' he tweeted. '1. Russia isn't Israel or even Iran. 2. Each new ultimatum is a threat and a step towards war. Not between Russia and Ukraine, but with his own country.' Plucking a nickname from Trump's dictionary, Medvedev warned the president not to 'go down the Sleepy Joe road,' referring to former President Joe Biden, which he said could lead to direct conflict between Russia and the U.S. Hours later, Medvedev, who is currently the deputy chair of Russia's security council, took a jab at South Carolina Senator Lindsay Graham after the Republican demanded that the Russian politician 'get to the peace table.' 'It's not for you or Trump to dictate when to 'get at the peace table'. Negotiations will end when all the objectives of our military operation have been achieved,' he said. 'Work on America first, gramps!' Earlier Wednesday, Trump announced plans to penalize India for buying Russian arms and oil as part of a revived 'Liberation Day' tariff package that is due to kick in on Friday, along with doubling down on his threat to impose sweeping 25 percent levies on Indian imports. While he previously called India a 'friend,' Trump escalated his criticism against the country during his rebuke of Medvedev on Thursday. 'I don't care what India does with Russia,' he wrote. 'They can take their dead economies down together, for all I care.' 'We have done very little business with India, their Tariffs are too high, among the highest in the World,' he added.
