Latest news with #AirlanggaHartarto
Indian Express
a day ago
- Business
- Indian Express
Why Indonesia's big refineries are teaming up with US on a $8 billion energy deal
Indonesia plans to sign an $8 billion contract with US-based company KBR Inc to build 17 modular oil refineries, according to a government presentation and two sources familiar with the matter, Reuters reported on Monday. The plan was shared during a closed-door meeting between Indonesian Economic Minister Airlangga Hartarto and local business leaders, Reuters said, citing two people who attended the briefing and viewed the presentation. The deal is linked to a recent trade agreement between Indonesia and the United States, which saw Washington lower proposed tariffs on Indonesian goods from 32 per cent to 19 per cent. KBR Inc, known as Kellogg Brown & Root, and Indonesia's sovereign wealth fund Danantara are expected to sign the engineering, procurement, and construction contract. Neither party responded to Reuters' request for comment. Reuters reported that Danantara manages assets worth more than $900 billion and is involved in Indonesia's long-term goal of increasing its economic growth rate to 8 per cent from the current 5 per cent. The presentation, seen by Reuters, also mentioned other potential deals tied to the US-Indonesia agreement. This includes a possible $2 billion investment by Indonesian company Indorama in a blue ammonia project in Louisiana, which may require US tax credits to proceed. US President Donald Trump last week said Indonesia would purchase 50 Boeing aircraft as part of the wider trade deal. According to the government's presentation reviewed by Reuters, aviation-related agreements with American firms could total $14.4 billion. The total potential value of all deals could reach $34 billion. The presentation also said, 'Indonesia welcomes more US business and investment to create jobs, technology transfer and to support national priority developments.' It added that reduced tariffs could make Indonesia a competitive hub for regional industrial relocation. The government expects the trade deal could lift Indonesia's GDP growth by 0.5 percentage points. US firms such as Apple and General Electric are expected to benefit from eased rules on local content for IT and medical products. Indonesia previously banned iPhone 16 sales after Apple failed to meet domestic production rules. The ban was lifted after the company pledged to invest over $300 million in the country.
Khaleej Times
a day ago
- Business
- Khaleej Times
Indonesia plans $8 billion refineries contract with US firm amid tariffs deal
Indonesian sovereign wealth fund Danantara plans to sign an $8 billion engineering, procurement and construction contract with U.S. engineering firm KBR Inc to build 17 modular refineries, according to two sources familiar with the matter and an official economic ministry presentation seen by Reuters. The contract is part of last week's trade pact between Indonesia and the United States that led to a reduction in the threatened U.S. proposed tariff rate to 19% from 32%. Indonesian Economic Minister Airlangga Hartarto, the chief negotiator of the deal, disclosed the modular refinery plan during a closed-door briefing to Indonesian business leaders on Monday evening. Two sources confirmed the planned deal was mentioned in a presentation that Reuters also reviewed. Danantara and KBR Inc, formerly known as Kellogg Brown Root, did not immediately respond to requests for comment. While some details of the trade deal between the United States and Indonesia have been made public, such as for increased energy cooperation, the proposed contract for refineries has not previously been reported.
Time of India
2 days ago
- Business
- Time of India
Indonesia plans $8 bln refineries contract with US firm amid tariffs deal
Indonesian sovereign wealth fund Danantara plans to sign an $8 billion engineering, procurement and construction contract with US engineering firm KBR Inc to build 17 modular refineries , according to two sources familiar with the matter and an official economic ministry presentation seen by Reuters. The contract is part of last week's trade pact between Indonesia and the United States that led to a reduction in the threatened US proposed tariff rate to 19 per cent from 32 per cent. Indonesian Economic Minister Airlangga Hartarto, the chief negotiator of the deal, disclosed the modular refinery plan during a closed-door briefing to Indonesian business leaders on Monday evening. Two sources confirmed the planned deal was mentioned in a presentation that Reuters also reviewed. Danantara and KBR Inc, formerly known as Kellogg Brown & Root, did not immediately respond to requests for comment. No further details were given on the proposed agreement. While some details of the trade deal between the United States and Indonesia have been made public, such as increased purchases of US energy, agriculture and commercial aircraft, the proposed contract for refineries has not previously been reported. Daya Anagata Nusantara - better known as Danantara - controls over $900 billion worth of assets and is part of an ambitious plan to grow the $1.5 trillion economy at a rate of 8 per cent compared to the current 5 per cent. Also mentioned in the presentation was a potential $2 billion "strategic" investment to develop blue ammonia in US state Louisiana, by Indonesian chemical and textile group Indorama. But, the presentation added, the project needs tax credits to become feasible. US President Donald Trump said last week that Indonesia would buy 50 aircraft from Boeing as part of the deal. The presentation put the total value of aviation sector deals with American companies at $14.4 billion. The potential deals between Indonesia and US could reach $34 billion, the presentation showed, underscoring the all-out push by Jakarta to become one of the first countries in the world to clinch a deal with Washington. "Indonesia welcomes more U.S. business and investment to create jobs, technology transfer and to support national priority developments," the presentation said, adding that the comparatively lower tariff for Indonesia could make it a site for regional industry relocations. Jakarta believes the fallout of the lowered tariff rate could boost its GDP growth by 0.5 percentage points, the presentation said. Apple and General Electric were also mentioned in the presentation as US firms that will benefit from relaxed local content requirements for US information and communication technology goods and medical devices. Indonesia's local content rules make it mandatory to have a certain percentage of products made in-country, and have been previously seen as too stringent by some foreign businesses looking to enter the world's fourth most populous country. The Southeast Asian country banned iPhone 16 sales last year as Apple failed to meet composition requirements. The ban was lifted only following the company's more than $300 million investment plan.
Business Times
2 days ago
- Business
- Business Times
Indonesia plans US$8 billion refineries contract with US firm amid tariffs deal: sources
[JAKARTA] Indonesian sovereign wealth fund Danantara plans to sign a US$8 billion engineering, procurement and construction contract with US engineering firm KBR to build 17 modular refineries, according to two sources familiar with the matter and an official economic ministry presentation seen by Reuters. The contract is part of last week's trade pact between Indonesia and the United States that led to a reduction in the threatened US proposed tariff rate to 19 per cent from 32 per cent. Indonesian Economic Minister Airlangga Hartarto, the chief negotiator of the deal, disclosed the modular refinery plan during a closed-door briefing to Indonesian business leaders on Monday (Jul 21) evening. Two sources confirmed the planned deal was mentioned in a presentation that Reuters also reviewed. Danantara and KBR, formerly known as Kellogg Brown & Root, did not immediately respond to requests for comment. No further details were given on the proposed agreement. While some details of the trade deal between the United States and Indonesia have been made public, such as increased purchases of US energy, agriculture and commercial aircraft, the proposed contract for refineries has not previously been reported. Daya Anagata Nusantara, better known as Danantara, controls over US$900 billion worth of assets and is part of an ambitious plan to grow the US$1.5 trillion economy at a rate of 8 per cent compared to the current 5 per cent. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Also mentioned in the presentation was a potential US$2 billion 'strategic' investment to develop blue ammonia in US state Louisiana, by Indonesian chemical and textile group Indorama. But, the presentation added, the project needs tax credits to become feasible. US President Donald Trump said last week that Indonesia would buy 50 aircraft from Boeing as part of the deal. The presentation put the total value of aviation sector deals with American companies at US$14.4 billion. The potential deals between Indonesia and US could reach US$34 billion, the presentation showed, underscoring the all-out push by Jakarta to become one of the first countries in the world to clinch a deal with Washington. 'Indonesia welcomes more US business and investment to create jobs, technology transfer and to support national priority developments,' the presentation said, adding that the comparatively lower tariff for Indonesia could make it a site for regional industry relocations. Jakarta believes the fallout of the lowered tariff rate could boost its GDP growth by 0.5 percentage points, the presentation said. Apple and General Electric were also mentioned in the presentation as US firms that will benefit from relaxed local content requirements for US information and communication technology goods and medical devices. Indonesia's local content rules make it mandatory to have a certain percentage of products made in-country, and have been previously seen as too stringent by some foreign businesses looking to enter the world's fourth most populous country. The South-east Asian country banned iPhone 16 sales last year as Apple failed to meet composition requirements. The ban was lifted only following the company's more than US$300 million investment plan. REUTERS
New Straits Times
2 days ago
- Business
- New Straits Times
Indonesia plans US$8bil refineries contract with US firm amid tariffs deal
JAKARTA: Indonesian sovereign wealth fund Danantara plans to sign an US$8 billion engineering, procurement and construction contract with US engineering firm KBR Inc to build 17 modular refineries, according to two sources familiar with the matter and an official economic ministry presentation seen by Reuters. The contract is part of last week's trade pact between Indonesia and the United States that led to a reduction in the threatened US proposed tariff rate to 19 per cent from 32 per cent. Indonesian Economic Minister Airlangga Hartarto, the chief negotiator of the deal, disclosed the modular refinery plan during a closed-door briefing to Indonesian business leaders on Monday evening. Two sources confirmed the planned deal was mentioned in a presentation that Reuters also reviewed. Danantara and KBR Inc, formerly known as Kellogg Brown & Root, did not immediately respond to requests for comment. While some details of the trade deal between the United States and Indonesia have been made public, such as for increased energy cooperation, the proposed contract for refineries has not previously been reported.
