ASIATODAY.ID, WASHINGTON – The US-ASEAN Business Council (US-ABC) views economic cooperation between the United States and Indonesia as optimistic.
US-ABC Senior Vice President (Policy) Marc Mealy, expressed confidence that economic cooperation between the two countries will further develop in the future.
“It is hoped that the change of government in the two countries will bring fresh air that will open up new opportunities to strengthen bilateral relations and expand business relations in various sectors,” he said in a meeting with the Coordinating Minister for the Indonesian Economy, Airlangga Hartarto.
Airlangga was invited as the keynote speaker at the Roundtable Luncheon meeting organized by US-ABC in Washington D.C. on Thursday, November 21, 2024.
Several large companies also attended the meeting, including FedEx, ExxonMobil, S&P Global, BP, and Freeport-McMoRan. Apart from introducing themselves, the various companies present also interacted in strategic dialogue to increase or expand expansion in economic cooperation with Indonesia, including investment and trade.
In his presentation, Airlangga expressed optimism about strengthening relations between the Indonesian business community and the United States.
He also explained the latest developments in the Indonesian economy, the priorities of the new Government, and the Government’s strategy towards a Golden Indonesia 2045.
Airlangga emphasized that Indonesia’s economic fundamentals remain maintained amidst a world facing global economic challenges, such as geo-economic fragmentation, price spikes due to geopolitical tensions, and high interest rates which worsen the debt burden.
“Indonesia’s economy grew strongly by 5% in the first semester of 2024. The economic growth rate was driven by low and controlled inflation within the target range, and the ratio of debt to gross domestic product was also controlled. This condition provides a strong basis for national economic stability,” said Airlangga.
Various companies present at the forum paid attention to President Prabowo’s policies which focused on the food sector, new renewable energy and industrial downstreaming. There are various potentials for cooperation in increasing food productivity, with the Indonesian Government launching a food estate program, developing rice fields for rice crops, and the sugar industry.
There is also potential for cooperation in the field of new renewable energy, such as hydropower, geothermal, carbon capture and storage, and small modular reactors, which can help Indonesia achieve its Net Zero Emission target.
Regarding the acceleration of industrial downstreaming, the meeting noted various important achievements in 2024, including the start of operations of the largest EV battery facility in Southeast Asia and the largest single-line copper processing facility in the world.
“This achievement is an important step in strengthening the competitiveness of Indonesian industry at the global level and encouraging a more sustainable economic transformation,” said Airlangga.
The companies present also paid attention to Indonesia’s efforts to encourage improvements in economic standards through the OECD, in line with the Golden Indonesia 2045 vision which is expected to be able to encourage accelerated reform on environmental, social and governance (ESG) issues, increase Indonesia’s influence in global leadership, and improve investor confidence.
Indonesia is expected to encourage investment through continued provision of fiscal incentives so that it can encourage job creation, facilitate the transfer of new skills and technology, and increase economic growth.
Answering questions from several companies regarding the influence of the new government on the business ecosystem and opportunities to invest in Indonesia, Airlangga emphasized that the change in government is not an obstacle, in fact it opens up more opportunities for companies to invest, so that they can contribute to creating new jobs in Indonesia.
Regarding the readiness of Indonesia’s infrastructure to receive investment from outside, Airlangga emphasized Indonesia’s readiness to receive incoming investment, demonstrated, among other things, by the existence of 22 Special Economic Zones which provide convenience and incentives for investors.
At the end of the meeting, Airlangga expressed his appreciation to US-ABC and all the companies present, and invited the US business community to immediately develop investment in Indonesia towards sustainable development. (AT Network)
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