Indonesia Explores Barter Trade with the Philippines Amid Currency Challenges

RRI.CO.ID, Jakarta - Indonesia is preparing a barter trade scheme with the Philippines as an alternative transaction model to navigate exchange rate volatility affecting both countries.

Trade Minister Budi Santoso revealed the plan while addressing concerns over the rupiah’s depreciation and its impact on foreign trade at the Ministry of Trade office in Jakarta on Wednesday, June 3, 2026. “We have an alternative, for example, using barter. On June 12, we will meet with Philippine business representatives,” he said, as quoted by Antara.

The initiative follows Minister Budi’s earlier discussions with a Philippine importer during the ASEAN Joint Foreign and Economic Ministers’ Meeting (AMM‑AEM) in Cebu. The importer, who has long sourced Indonesian products, proposed a barter arrangement to simplify transactions and reduce reliance on the US dollar.

Both Indonesia and the Philippines are currently experiencing currency pressures, making the barter mechanism an attractive option. The Ministry of Trade has since identified a suitable buyer, with a contract signing scheduled for June 12, 2026.

Although Minister Budi did not disclose which commodities will be included in the scheme, he confirmed that full details will be announced at the signing. He stressed that the government continues to monitor food prices and raw material imports to ensure industrial and public needs remain stable despite exchange rate fluctuations.

This move highlights Indonesia’s effort to explore innovative trade mechanisms while strengthening regional cooperation in the face of global financial uncertainty. ***