Just recently, Reuters released a report about Indonesia’s Danantara and US-based KBR planning to sign an $8 billion contract to build 17 modular oil refineries. The report made the mention of an official presentation and a couple of sources holding details about the matter.
The contract is connected to a recent trade agreement featuring Indonesia and the US. The deal is reportedly going to reduce US tariffs on Indonesian goods from 32% to 19%. Both parties are expected to sign the engineering, procurement and construction contract real soon.
In the Reuters article, it has been reported that Indonesia’s Danantara manages asset amounting to more than $900 billion and is supports the country’s long-term strategy to increase the national economic progress rate to 8% from 5%.
Trump tariffs doing the rounds on social media
The official presentation, reported by Reuters, also mentioned other potential agreements tied to the US-Indonesia deal. This induces a possible $2 billion funding by Indorama in a notable blue ammonia project in Louisiana.
Just recently, US President Donald Trump also reported that Indonesia is going to purchase 50 Boeing aircraft as part of a significant trade agreement. This is a sizeable deal, especially as the update about Trump tariffs is doing the rounds on social media.
The presentation also noted that Indonesia appreciates more US business and funding to create employment in the country, technology transfer and to support national priorities. Reduced US tariffs could make Indonesia a great place for regional industrial relocation.
