Jakarta. Indonesia's strong economic fundamentals, characterized by robust growth and manageable inflation, position the country as an attractive destination for new US investments, according to Coordinating Economic Affairs Minister Airlangga Hartarto. Speaking to members of the US business community during a recent gathering, Airlangga highlighted Indonesia’s readiness to enhance economic cooperation with the United States following leadership transitions in both nations.

Indonesia and the United States recently held peaceful presidential elections, with Prabowo Subianto succeeding Joko Widodo in October and Donald Trump set to begin his second term in January. Airlangga said the leadership changes open opportunities for both governments and businesses to explore new areas of collaboration.

The remarks were made during a roundtable luncheon hosted by the US-ASEAN Business Council (USABC) in Washington, DC, on Thursday. Attendees included representatives from major US companies such as FedEx, ExxonMobil, S&P Global, BP, and Freeport-McMoRan.

"The Indonesian economy grew by a solid 5 percent in the first half of 2024, underpinned by low, manageable inflation and a sustainable debt-to-GDP ratio," Airlangga said. "These factors provide a strong foundation for economic stability."

He also underscored Indonesia’s economic resilience in the face of global challenges, including escalating geopolitical tensions, increasing fragmentation of global power structures, and rising benchmark interest rates.

During the event, Airlangga briefed US executives on President Prabowo’s economic agenda and the government’s roadmap for achieving the “Golden Indonesia 2045” vision, which aspires to make Indonesia a developed nation by its centennial anniversary. The new administration targets an ambitious 8 percent annual economic growth over the next five years.

The American business community expressed keen interest in President Prabowo’s food security and energy transition strategies. To bolster food self-sufficiency, the government has launched the Food Estate program, which includes expanding paddy and sugarcane fields in key islands outside Java. In addition, the administration aims to accelerate the development of renewable energy sources such as hydropower, wind, and solar, aligning with its net-zero emissions goals.

Indonesia is currently seeking membership in the Organization for Economic Cooperation and Development (OECD), which necessitates governance reforms and adherence to best practices in environmental and social standards. Airlangga said that these reforms, coupled with fiscal incentives, are designed to attract foreign investments, create jobs, and promote technology and skills transfer.

The minister highlighted recent milestones in Indonesia’s industrial development, including the launch of Southeast Asia's largest electric vehicle battery production facility and the world’s biggest single-line copper production plant. "These achievements mark critical steps in strengthening Indonesia's industrial competitiveness and driving sustainable economic transformation," Airlangga said.

Marc Mealy, USABC’s Chief Policy Officer and Senior Vice President, described the timing as pivotal for US-Indonesia economic relations. "With the inauguration of Indonesia's President Prabowo last month, we find ourselves at a crucial moment in US-Indonesia economic relations.” 

He added that the roundtable laid the groundwork for the upcoming Indonesia Business Mission, during which USABC will bring representatives from 50 companies to Jakarta from December 3 to 5. The mission is expected to deepen ties with Indonesia’s Coordinating Ministry of Economic Affairs and explore long-term collaboration opportunities.

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