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yesterday

Indonesia Set to Sign $8 Billion Modular Refinery Contract With KBR Under US Trade Pact

The pact ties the refinery deal to tariff cuts, reciprocal purchases under a trade agreement designed to bolster Indonesia’s energy security and growth

A sign for Indonesia's sovereign wealth fund Danantara is seen in front of its headquarters in Jakarta, Indonesia, February 28, 2025. REUTERS/Willy Kurniawan/ File Photo

Overview

  • Indonesia’s sovereign wealth fund Danantara and US engineer KBR are poised to ink an EPC contract for 17 modular refineries across the archipelago.
  • The agreement lowers US tariffs on Indonesian goods from 32% to 19% after a 90-day suspension triggered by President Trump’s April levies.
  • Jakarta plans to import about $10 billion of American oil and liquefied petroleum gas to reduce dependence on Singapore-sourced fuel.
  • The deal secures orders for 50 Boeing commercial jets and relaxes local-content rules for US investors including Apple and General Electric.
  • Officials estimate the full package of aviation, energy and industrial investments could top $34 billion and boost GDP growth by 0.5 percentage points.