Indonesian President Joko Widodo will visit the U.S. and meet with President Obama on October 26—an historic opportunity to enhance commercial exchange.
- Presidents Widodo and Obama plan to promote business and investment between their countries to realize the full potential of their economic relationship.
- U.S. goods trade with Indonesia exceeded $27 billion in 2014.
- Principal U.S. exports to Indonesia include transportation equipment, including aircraft, food and agricultural products, machinery and equipment, and chemicals. Principal imports include agriculture, knit apparel, rubber, machinery and footwear.
- With more than 60 million Indonesians projected to join the middle class in the next ten years, Indonesia is a growing market for U.S. companies.
- Indonesia is among the top thirty largest markets for U.S. exports and among the top ten largest markets for U.S. agricultural exports. Significant opportunities exist for enhanced commercial exchange, from consumer markets to aviation to defense.
- Indonesia and the U.S. signed a Trade and Investment Framework Agreement (TIFA) in 1996 and continue to work to reduce trade and investment barriers.
- In 2011, Indonesia and the United States completed the second debt-for-nature swap. Indonesia has upheld commitments to protect forests and reduce greenhouse gas emissions.
- Since 2013, Indonesia has been the proud recipient of a $600 million Millennium Challenge Corporation Compact with investments in renewable energy, maternal and child health, and public procurement modernization.
- The mutual value inherent in stronger Indonesia-U.S. commercial relations is exemplified by Boeing’s $22.4 billion deal with Indonesia’s Lion Air, the largest commercial sale in their history.
Indonesia is investing in a growth-led future built on strong economic fundamentals.
- Indonesia’s economic foundation is strong, with relatively high purchasing power, strong domestic consumption, and low debt levels. The country’s trillion-dollar-economy is the largest in South East Asia and is expected to grow 5.3% in 2015.
- Since the so-called Asian Financial Crisis, Indonesia has radically reduced its debt from nearly 90% of GDP to only 28% of GDP.
- Upon assuming office, President Widodo removed a highly inefficient fuel subsidy, freeing up $20 billion for investment in irrigation, agriculture, and transportation.
- Indonesia is investing heavily in infrastructure. Projects include extensive upgrades to select seaports, railways, and roads.
- President Widodo recently launched nearly 150 regulatory reforms all aimed at improving the investment climate.
- The President’s plan includes power plants to generate 35,000 megawatts (MW) of new electricity. In August, he broke ground on a $4 billion 2,000 MW power plant in central Java, a model for future projects.
Commercial and investment exchange between Indonesia and the U.S. is strong and mutually beneficial. The historic meeting of Presidents Obama and Widodo will seek to unleash even more economic dynamism.