Prabowo Subianto Secures $8.5 Billion Investment Commitment in the UK: A New Era of Optimism for Indonesia's Economy

London, INTI – The official visit of Indonesian President Prabowo Subianto to the United Kingdom has yielded remarkable results. During his trip, the President successfully secured a commitment for $8.5 billion in investments from 19 major UK companies. The agreement was reached during a strategic meeting at the CEO Roundtable Forum held at Lancaster House in London on Thursday, November 21, 2024.

“We just met with the leaders of major companies here. They have committed to investing $8.5 billion. This shows their optimism about Indonesia’s economic prospects,” President Prabowo said in a statement to the press in London.

Global Optimism Towards Indonesia's Economy

This achievement adds to the growing list of diplomatic and economic successes for President Prabowo. His earlier visits to Brazil, the United States, and China also attracted significant global interest in Indonesia’s stable economy and investment climate.

According to President Prabowo, the global confidence in Indonesia is driven by the government’s continued commitment to building clean and efficient governance. “Our clean and transparent government is highly appreciated internationally. This provides assurance to investors who are keen to invest in Indonesia,” he added.

Key Investment Sectors: Energy, Infrastructure, and Education

Finance Minister Sri Mulyani, who also attended the forum, explained that the CEOs were particularly interested in Indonesia's priority sectors, including energy transition, infrastructure, education, and healthcare. Among these, the focus is on improving the quality of education, especially in STEM (Science, Technology, Engineering, and Mathematics) fields, and boosting the healthcare system.

“They were very impressed with President’s commitment to a clean and efficient government. Many were surprised in a positive way to hear directly from the President about his priorities and the government’s dedication to building a sustainable economy,” said Sri Mulyani.

One of the most compelling areas for investment is the energy transition, particularly the development of renewable energy. Indonesia has set a target to achieve 23% of its energy mix from renewable sources by 2025. This goal presents a tremendous opportunity for collaboration with the UK, which has established itself as a global leader in renewable energy technologies.

Political Stability and Peaceful Government Transition

Minister for Investment and Downstreaming, Rosan Roeslani, added that Indonesia’s political stability and the peaceful transition of government have played a pivotal role in boosting investor confidence. “The political stability and smooth government transition in Indonesia have provided additional confidence to investors, making them more eager to invest in our country,” said Rosan.

Rosan also mentioned that the government would follow up on this commitment with further meetings with the companies expressing interest in Indonesia. The focus will be on sectors such as raw material processing (downstreaming) and transportation infrastructure, which have generated significant interest.

CEO Roundtable Forum: A Strategic Moment for Bilateral Economic Cooperation

The CEO Roundtable Forum, attended by President Prabowo, was a key moment for strengthening bilateral economic relations between Indonesia and the UK. The forum brought together leaders of 19 major UK companies, including representatives from energy, technology, and manufacturing sectors.

Several of the companies present are known for their global portfolios and experience in large-scale projects. With a total investment commitment of $8.5 billion, this forum not only opens up new investment opportunities but also acknowledges Indonesia’s growing economic potential on the global stage.

Real-Time Economic Data and Investment Climate in Indonesia

According to the Indonesian Investment Coordinating Board (BKPM), foreign direct investment (FDI) in Indonesia reached $32.2 billion by the third quarter of 2024, marking a 14% increase from the previous year. Energy and infrastructure sectors remain the largest contributors to these investments, totaling approximately $10 billion.

Moreover, Indonesia now ranks 4th in the Global Competitiveness Index for Southeast Asia, climbing two places from the previous year. This improvement reflects the government’s efforts to implement investment-friendly policies, including simplifying licensing procedures and providing tax incentives for priority sectors.

These statistics confirm that Indonesia’s economic and investment climate continues to improve, positioning the country as a leading destination for foreign investment in Southeast Asia.

Strategic Government Agenda in the UK

President Prabowo’s visit to the UK was not just about attracting investments; it was also a strategic move to reinforce bilateral ties in various fields, including education, technology, and innovation. During several meetings, President Prabowo discussed the potential for strategic cooperation in artificial intelligence (AI) and green technology.

Accompanying President Prabowo were Foreign Minister Sugiono, Finance Minister Sri Mulyani, Investment and Downstreaming Minister Rosan Roeslani, Cabinet Secretary Teddy Indra Wijaya, and Deputy Chairman of the Indonesian House of Representatives Commission 1 Budi Djiwandono. The presence of this comprehensive delegation further highlighted the Indonesian government’s commitment to advancing economic diplomacy.

Infrastructure Projects and Trade Partnerships

Another focal point of the discussion was the development of Indonesia’s infrastructure, especially in light of the country’s ambitious projects to build new cities, ports, and airports. UK companies with experience in large-scale infrastructure development are seen as key partners in these ventures. These projects are not only expected to drive economic growth but also create significant job opportunities for Indonesia’s workforce.

Additionally, trade relations between the two nations were also discussed, particularly in sectors like agribusiness, textiles, and consumer goods. The UK’s expertise in high-value-added manufacturing is viewed as an essential element in boosting Indonesia’s industrialization efforts. The potential for collaborations between Indonesian and UK companies in these sectors is immense, with both sides benefiting from the exchange of knowledge, technology, and resources.

The Role of Education and Technology in Indonesia’s Future

In line with Indonesia’s push for a knowledge-based economy, education and technology have become key pillars of the nation’s development agenda. President Prabowo’s government has placed particular emphasis on enhancing STEM education and vocational training to meet the demands of the modern workforce.

The UK, with its well-established educational institutions and cutting-edge research, is seen as an ideal partner for Indonesia in these areas. Collaboration on educational programs, exchange of faculty and students, as well as joint research initiatives, will play a crucial role in shaping Indonesia’s future in technology and innovation.

Indonesia’s Economic Outlook: A Bright Future Ahead

The $8.5 billion investment commitment secured by President Prabowo represents a significant step forward in Indonesia’s economic growth. It underscores the country's strong position in the global market and its growing importance as an investment hub in Southeast Asia.

Indonesia’s economy, the largest in Southeast Asia, is projected to grow by 5.1% in 2024, driven by robust consumption, growing exports, and increasing foreign investment. The government’s focus on infrastructure development, energy transition, and human capital development will continue to attract international investors looking for long-term opportunities in one of the world’s most dynamic markets.

A New Chapter for Indonesia’s Global Standing

President Prabowo Subianto’s success in securing $8.5 billion in investments from UK companies is a clear testament to the rising global confidence in Indonesia’s economic potential. By prioritizing clean governance, political stability, and strategic economic reforms, Indonesia has established itself as a leading destination for foreign investment.

This milestone opens the door to more opportunities for Indonesia, creating jobs, boosting innovation, and contributing to the nation’s long-term prosperity. With a forward-looking government, a stable political environment, and a robust investment climate, Indonesia is poised to take its place as a key player in the global economy.