FX.co ★ Indonesia Plans USD 8 Billion Refineries Contract with US Amid Tariff Deal

Indonesia's sovereign wealth fund, Danantara, is set to finalize an $8 billion engineering, procurement, and construction (EPC) contract with U.S. engineering firm KBR Inc. The contract involves the construction of 17 modular refineries. According to insiders and an official presentation from the Economic Ministry, this agreement is part of a recent trade deal between Indonesia and the U.S., which resulted in a reduction of proposed U.S. tariffs from 32% to 19%, as highlighted in a recent Reuters report. Indonesia's Economic Minister, Airlangga Hartarto, who led the negotiations, disclosed the plan for the modular refineries to Indonesian business leaders in a private meeting on Monday evening. As part of this deal, Indonesia agreed to purchase $15 billion in U.S. energy products, $4.5 billion in agricultural goods, and acquire 50 Boeing aircraft.