Airlangga Hartarto Pushes Economic Cooperation at US-ABC Roundtable Luncheon in Washington D.C.

Jakarta, INTI – Coordinating Minister for Economic Affairs of Indonesia, Airlangga Hartarto, served as the keynote speaker at the Roundtable Luncheon organized by the US-ASEAN Business Council (US-ABC) on Thursday, November 21, 2024. The high-profile event, held in Washington D.C., was attended by major corporations such as FedEx, ExxonMobil, S&P Global, BP, and Freeport-McMoRan.

The forum provided a platform for strategic dialogue between business leaders and government representatives to explore opportunities for strengthening economic ties between Indonesia and the United States. Topics included investment, trade expansion, and collaboration in priority sectors such as energy, food security, and industrial downstreaming.

Optimism for Strengthened Bilateral Relations

During his speech, Airlangga Hartarto expressed optimism about the future of economic cooperation between Indonesia and the United States. He highlighted Indonesia’s recent economic achievements, the priorities of the newly inaugurated government under President Prabowo Subianto, and the strategic vision of "Indonesia Emas 2045."

“Indonesia's economic fundamentals remain robust despite global challenges such as geo-economic fragmentation, geopolitical tensions, and high interest rates. In the first half of 2024, our economy grew by 5%, supported by controlled inflation and a manageable debt-to-GDP ratio,” Airlangga stated.

This strong foundation, he emphasized, presents a promising landscape for foreign investors seeking stability and growth opportunities in Southeast Asia.

Opportunities in Key Strategic Sectors

The participating companies expressed keen interest in several sectors identified by the Indonesian government as priorities for development:

1. Food Security:
   Indonesia is actively implementing a food estate program to boost agricultural productivity. This initiative includes the expansion of rice fields and the development of the sugar industry to enhance national food security and international competitiveness.
2. Renewable Energy:
   Indonesia is committed to transitioning to renewable energy and has identified potential investments in hydropower, geothermal energy, carbon capture and storage (CCS), and small modular reactors (SMRs). These projects are expected to play a pivotal role in achieving the country’s Net Zero Emission target by 2060.
3. Industrial Downstreaming:
   A key highlight of 2024 was the operational launch of Southeast Asia’s largest electric vehicle (EV) battery facility and the world’s largest single-line copper smelting facility.
   “These milestones are critical steps toward strengthening Indonesia’s industrial competitiveness and fostering sustainable economic transformation,” said Airlangga.

Driving Economic Standards through OECD and ESG

Discussions also focused on Indonesia’s efforts to elevate its economic standards through engagement with the Organisation for Economic Co-operation and Development (OECD). These efforts align with the country's commitment to advancing reforms in environmental, social, and governance (ESG) practices, thereby boosting its global leadership and investor confidence.

Indonesia's long-term vision includes creating a favorable investment climate through continued fiscal incentives, which aim to stimulate job creation, facilitate the transfer of skills and technology, and promote inclusive economic growth.

Addressing Investor Concerns and New Opportunities

Several companies raised questions about the potential impact of Indonesia’s new government on the business ecosystem and investment opportunities. Airlangga assured attendees that the transition of leadership would not hinder economic development but instead open new doors for collaboration.

“Rather than being a challenge, the change in government provides opportunities for businesses to invest in Indonesia and contribute to job creation,” he affirmed.

He also emphasized the readiness of Indonesia’s infrastructure to accommodate foreign investments. Notably, the country has established 22 Special Economic Zones (SEZs), offering a range of incentives and streamlined processes for investors.

Commitment to Sustainable Investments

In his closing remarks, Airlangga expressed gratitude to US-ABC and participating companies for their engagement and extended an invitation to the American business community to expand their investments in Indonesia.

“We are committed to fostering a conducive investment climate through legal certainty, comprehensive incentives, and robust support for businesses that contribute to Indonesia's economic transformation,” he concluded.

Indonesia as a Strategic Global Partner

Indonesia’s participation in this forum underscores its strategic position as a vital economic partner for the United States and the broader global community. By focusing on key sectors such as food security, renewable energy, and industrial downstreaming, Indonesia offers a wealth of opportunities for innovative and sustainable investments.

This enhanced cooperation is expected to benefit not only both nations but also contribute positively to global economic stability and growth.

Future Outlook and Collaborative Opportunities

As Indonesia marches toward its vision of Indonesia Emas 2045, it positions itself as a hub for sustainable development, innovation, and global partnerships. The government’s proactive approach to strengthening bilateral relations, fostering investment, and addressing global challenges reflects its determination to create a resilient and inclusive economy.

By welcoming international collaborations in critical areas, Indonesia aims to solidify its role as a leader in Southeast Asia and a dependable partner for global economic advancement.