Philippines signs US$350 million barter deal for textiles, steel
The scheme swaps abaca fiber and iron ore without US dollar payments, worth about Rp6,29 trillion a year.
Indonesia and the Philippines on Monday signed two tripartite barter memorandums of understanding worth a total of US$350 million, or about Rp6,29 trillion a year, in Jakarta. The agreement covers exchanges of raw abaca fiber for finished textile products valued at US$50 million a year, and steel products for iron ore from the Philippines worth US$300 million a year for Krakatau Steel production needs. The signing involved Asian Pyrochem Technologies, PT Trade Barter Indonesia, Asosiasi Garment dan Tekstil Indonesia, and PT Krakatau Global Trading. Trade Minister Budi Santoso said the scheme could reduce reliance on the US dollar amid exchange-rate swings and global trade uncertainty. From January-April 2026, total trade between the two countries reached US$4,16 billion, with a surplus of US$2,93 billion for Indonesia.