Jakarta. US technology companies already operating in Indonesia are willing to invest billions of dollars more, while data centers and artificial intelligence (AI) infrastructure are emerging as promising areas for further investment, the US-ASEAN Business Council (USABC) has said.

“There are large tech companies that are already multi-billion-dollar investors in Indonesia that are willing to do billions more,” USABC President Brian McFeeters said at a media briefing in Jakarta on Friday.

Brian said the council could not disclose specific investment commitments or determine when and how much additional capital individual companies would deploy, as those decisions rested with the companies themselves.

Bhredipta Socarana, USABC's country head for Indonesia, identified digital infrastructure, including data centers and computing capacity for AI technologies, as among the country's most promising investment opportunities.

He said several investors had already invested in constructing data center sites and facilities in Indonesia, which he expected to represent significant investments in both number and value. However, he did not provide specific figures.

Indonesia's investment performance provides a broader context for the country's efforts to attract more capital. Direct investment realization reached Rp 1,010.6 trillion (approx. $55.76 billion) in the first half of 2026, equivalent to 49.5% of the annual target, according to data cited in USABC's report. Foreign direct investment also grew 25.7% year-on-year in the second quarter.

The figures come as Indonesia seeks to accelerate economic growth toward the government's 8% target by 2029. The council argues that companies already operating in the country are among the most dependable sources of additional investment, with expansion decisions heavily influenced by how regulations work in practice.

In its October 2026 white paper, 8 Recommendations for Indonesia's 8% Economic Growth, USABC outlines policy changes it says could improve the business environment, including reforms to import procedures, digital regulation, local-content requirements and trade agreement implementation.

Import licensing and import-duty barriers remain among the concerns raised by its members. Some companies reported annual impacts exceeding $1 million from these barriers, while fragmented approval procedures, overlapping requirements and unpredictable processing times have increased business costs and complicated expansion plans, the report said.

The report also calls for Indonesia to align its local-content requirements, known as TKDN, with the actual capabilities of domestic suppliers, including their ability to meet companies' needs in terms of availability, quality and production capacity.

Rather than removing the requirements, USABC recommends giving companies greater scope to meet local-content obligations through technology transfer, supplier development and partnerships with Indonesian businesses. It argues that overly rigid requirements could increase operating costs and limit access to advanced inputs, potentially weakening the competitiveness of Indonesian manufacturers.

Regulatory consistency is particularly important because investment decisions are often made by company headquarters comparing opportunities across different countries, Brian said.

“If there's a lack of clarity and a lack of consistency, then the headquarters may look at another country,” he said.

He cited recent adjustments to Indonesia's local-content requirements as an example of progress, saying the government had allowed companies to fulfill certain obligations through research and training contributions.

Bhredipta said businesses needed policies that were not only clearly formulated but also realistic to implement, taking into account available resources, technical capabilities and conditions on the ground.

He outlined three conditions for stronger investor confidence: regulatory clarity and consistency, requirements proportionate to implementation capacity, and partnerships between the government, businesses and the wider public.

Brian said Indonesia remained one of the top three ASEAN markets prioritized by USABC member companies, alongside Vietnam and the Philippines. He cited the country's young, digitally savvy population and growth potential in healthcare, education, energy and agriculture as factors sustaining US business interest.

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