Jakarta. Indonesian and Philippine companies on Monday signed countertrade agreements with potential transaction values of up to $350 million, as the two countries seek to reduce dependence on the US dollar amid sharp currency fluctuations and global economic uncertainty.

The memorandum of understanding on countertrade arrangements was witnessed by Trade Minister Budi Santoso in Jakarta.

Budi said countertrade, or barter-based trade, could serve as an alternative mechanism for maintaining commercial activity during periods of exchange-rate volatility by allowing transactions to proceed without full reliance on dollar-denominated payments.

“A well-structured countertrade scheme can become an important trade instrument amid global trade uncertainty and current currency pressures. The government is fully committed to providing regulatory guidance and facilitating trade for Indonesian businesses,” Budi said.

He added that such arrangements could also help conserve foreign-exchange reserves at a time of heightened volatility in global financial markets.

Two agreements were signed during the event.

The first involved Philippine company Asian Pyrochem Technologies, Indonesia’s Trade Barter Indonesia, and the Indonesian Garment and Textile Association. Under the agreement, raw abaca fiber from the Philippines will be exchanged for finished Indonesian textile products in transactions valued at approximately $50 million annually.

The second agreement brought together Asian Pyrochem Technologies, Trade Barter Indonesia, and Krakatau Global Trading. The arrangement covers the exchange of steel products for Philippine iron ore to support the production needs of Krakatau Steel, with an estimated annual value of $300 million.

“These two projects demonstrate the commitment of Indonesian and Philippine businesses to develop innovative and mutually beneficial trade solutions. We hope this cooperation will strengthen industrial supply chains and create broader opportunities for future collaboration,” Budi said.

In addition to the signing ceremony, the Philippine delegation participated in business-matching sessions with Indonesian exporters and manufacturers. Products discussed ranged from construction materials to a variety of Indonesian goods considered to have strong potential in the Philippine market.

Trade relations between the two Southeast Asian neighbors have continued to strengthen. During the January-April 2026 period, bilateral trade reached $4.16 billion, generating a trade surplus of $2.93 billion for Indonesia.

The figure represented a 12.03% increase from the same period a year earlier. Indonesian exports to the Philippines recorded average annual growth of 1.63% between 2021 and 2025.

For the full year 2025, total trade between Indonesia and the Philippines reached $12.02 billion, with Indonesia posting a surplus of $8.42 billion.