Indonesia-Philippines launch $350 million barter deal for steel and textiles
Time:Thu, 11 Jun 2026 08:55:40 +0800
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Indonesia and the Philippines signed two agreements on June 8, 2026, to start a US$350 million barter trade program. This system allows both countries to exchange goods directly without using US dollars.
The program includes two key projects. First, a US$50 million textile project, where the Philippines exports raw abaca fiber to Indonesia for processing, and the finished products are sent back. Second, a US$300 million steel project, where the Philippines supplies iron ore to Indonesia to produce steel for export.
Both countries are also exploring more business opportunities, especially in construction materials and other industries. Indonesian officials believe the Philippine market offers strong growth potential.
Trade between the two countries is increasing. In 2025, total trade reached US$12.02 billion, and from January to April 2026, it grew by 12% year on year to US$4.16 billion, showing a strong and expanding partnership.
