Indonesian Economic Minister Airlangga Hartarto reportedly told business leaders during a closed-door briefing on Monday that sovereign wealth fund Danantara plans to finalize an $8 billion engineering, procurement, and construction agreement with KBR Inc. (NYSE:KBR) to build 17 modular refineries.
According to Reuters, the refinery contract was detailed in an official Indonesian economic ministry presentation reviewed by the outlet and confirmed by two sources familiar with the matter.
The deal follows a broader trade agreement between Indonesia and the United States that led to a reduction in a proposed U.S. tariff rate from 32% to 19%.
The planned agreement between Danantara and KBR has not yet been publicly announced. Both companies declined to comment, and no further details about the contract were provided.
The same presentation referenced a potential $2 billion investment by Indorama in a blue ammonia project in Louisiana, contingent on tax credits. It also outlined a $14.4 billion valuation for U.S. aviation deals and noted Indonesia’s purchase of 50 Boeing aircraft, as stated by President Donald Trump.
Reuters reported that the total value of prospective Indonesia-U.S. deals could hit $34 billion.
Price Action: KBR shares were trading 1.11% higher to $46.50 premarket at last check Tuesday.
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