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Straits Times
08-07-2025
- Business
- Straits Times
Indonesia pledges to buy more US wheat in bid for trade deal
Sign up now: Get ST's newsletters delivered to your inbox Indonesia signed a memorandum of understanding for US wheat purchases that spans this year through 2030. JAKARTA – Indonesia, the world's second-biggest wheat buyer, plans to purchase more wheat from the US as it seeks to secure a trade deal ahead of the looming tariff deadline. The South-east Asian nation signed a memorandum of understanding (MOU) for US wheat purchases that spans this year through 2030, Mr Franciscus Welirang, the chairman of the Indonesian Flour Mills Association – known as Aptindo – said at a ceremony on July 7 in Jakarta. The deal is valued at about US$1.25 billion (S$1.6 billion) , he said. As part of the MOU, Indonesia may buy at least 800,000 tons of wheat from the US this year, up from 740,000 tons in 2024, and a minimum of 1 million tons annually from 2026, he said. The US last sold more than 1 million tons of wheat to Indonesia in 2020, when it shipped about 1.2 million tons, US Department of Agriculture (USDA) figures show. While the new pledge marks an increase, it still represents a fraction of Indonesia's total wheat purchases. The USDA forecasts the country's imports at 12 million tons in the 2025 to 2026 season. The agreement will increase access for US wheat in Indonesia and help ensure a stable and steady market, Mr Joe Sowers, regional vice-president for South and South-east Asia for industry group US Wheat Associates, said after the signing in Jakarta. Top stories Swipe. Select. Stay informed. World 25% on Japan and Malaysia, 40% on Laos: Trump's tariff letters to Asia add pressure for deals by Aug 1 Business US stocks knocked lower by tariff jitters; Musk's political plan hits Tesla World Netanyahu says has nominated Trump for Nobel Peace Prize Singapore Fastest charger to be added to Singapore's EV charging network by Q4 in 2025 Singapore Singapore's second mufti Sheikh Syed Isa Semait dies at age 87 Singapore Fewer marriages in Singapore in 2024; greater marital stability for recent unions Singapore Competition watchdog gives SIA, Malaysia Airlines conditional approval to continue cooperation Singapore Eligible S'poreans to get up to $850 in GSTV cash, up to $450 in MediSave top-ups in August Seven major wheat suppliers, including Cargill and Bunge Global SA, will participate in the market based on their price competitiveness, he said. The nation mainly buys wheat from Australia, Canada and the US, Mr Welirang said, adding that the country may import about 9.5 million tons for the flour industry this year and the rest for feed. Indonesia also plans to sign similar pledges to boost purchases of other commodities, including corn and soybeans, at an event on July 7 in Washington, according to Mr Pujo Setio, an official from the nation's Coordinating Ministry for Economic Affairs. BLOOMBERG
Bloomberg
07-07-2025
- Business
- Bloomberg
Indonesia Pledges to Buy More US Wheat in Bid for Trade Deal
Indonesia, the world's second-biggest wheat buyer, plans to purchase more wheat from the US as it seeks to secure a trade deal ahead of the looming tariff deadline. The Southeast Asian nation will sign a memorandum of understanding for wheat purchases during 2025-2030 with the US in Jakarta on Monday, Franciscus Welirang, the chairman of the Indonesian Flour Mills Association — known as Aptindo — said in a phone interview.
Free Malaysia Today
04-07-2025
- Business
- Free Malaysia Today
Indonesia offers to cut duties on US goods to ‘near zero' in tariff talks
Indonesian state carrier Garuda will buy more Boeing planes as part of a US$34 billion pact. (AFP pic) JAKARTA : Indonesia has offered to cut duties on key imports from the US to 'near zero' and to buy US$500 million worth of US wheat as part of its tariff talks with Washington, its lead negotiator and a wheat industry association said today. Chief economics minister Airlangga Hartarto, who is Indonesia's lead negotiator, also confirmed that state carrier Garuda Indonesia would buy more Boeing planes as part of a US$34 billion pact with US partners due to be signed next week. Indonesia, which ran a goods trade surplus of US$17.9 billion with the US in 2024 according to the US trade representative, is facing a 32% tariff in US markets and has proposed increasing US imports to facilitate trade talks between the two sides. Airlangga said the Indonesian government has offered to cut tariffs on key American exports, including agricultural products, to near-zero from between 0% and 5% at present. 'It will be near zero (tariffs for US main exports), but it will depend as well on how much the tariffs we get from the US,' Airlangga said. Garuda's CEO has said it is in discussions with US Boeing to buy up to 75 units of aircraft. Garuda group did not respond to requests for comment today. The wheat purchases are also part of next week's pact with US partners. The chairman of Indonesia's wheat flour mills association, Franciscus Welirang, said its 'members will purchase 2 million tonnes in total through tenders with a competitive price.' 'The point is all of the members will buy US wheat,' Welirang, who is also a director at Indofood, told Reuters. The US counterparts in the wheat deal include Cargill, Bunge Global, Pacificor, Archer-Daniels-Midland, Columbia Grain International and United Grain Corporation, Welirang added. US exports to Indonesia include soybeans, petroleum gases and aircraft, Indonesian government data showed. When asked whether the trade talks include military deals, Airlangga said they were 'not part of the negotiation'. Susiwijono Moegiarso, a senior official with Indonesia's coordinating ministry for economic affairs, told Reuters that in return, Jakarta has asked the US for preferential tariffs on its main exports, including electronics, textiles and footwear. 'We want them to lower the tariffs (for those goods) as low as possible,' he said. Indonesia has also offered the US opportunities to invest in critical minerals projects, including in the country's abundant resources of copper, nickel and bauxite.
