US investments in Indonesia between 2014 and 2023 reached $67 billion, creating an economic impact of $130 billion. This achievement underscores the positive and robust relationship between the two countries and demonstrates the direct connection between high-quality, transparent private sector investments and Indonesia’s steadily growing economic prosperity, as reported by Antara.
US Ambassador to Indonesia, Kamala Shirin Lakhdhir, shared these insights during the opening of the US-Indonesia Investment Summit, hosted by the American Chamber of Commerce in Indonesia (AmCham Indonesia) in Jakarta on Tuesday, November 26, 2024.
Significant Economic Impact of US Investments in Indonesia
Ambassador Lakhdhir noted that this significant economic impact is due to US investors’ approach, which includes injecting new capital into Indonesia, committing to operational transparency, employing and empowering local workers, and adhering to Indonesian regulations.
This observation is one of the conclusions drawn from the 2024 US Investment in Indonesia Report, titled “US Investment: A Partner in Innovation for Indonesia,” prepared by the US Chamber of Commerce and AmCham Indonesia. Supported by the United States Agency for International Development (USAID), the report was launched as part of the 2024 US-Indonesia Investment Summit.
The report highlights the critical presence of US companies in Indonesia, emphasizing that their contributions are not limited to financial investments but extend to being catalysts for innovation across various sectors. This reflects the US commitment to continue supporting Indonesia’s economic growth, including the creation of high-quality, technologically advanced job opportunities.
Opportunities and Challenges for Future Collaboration
During the event, Lydia Ruddi, Managing Director of AmCham Indonesia, emphasized that US companies have long been loyal partners in Indonesia’s economic development.
“As Indonesia continues to develop, our investments also grow, with increasing emphasis on the health sector and digital innovation for the future,” Lydia stated at the 12th US-Indonesia Investment Summit 2024 on Tuesday, November 26, as quoted by Kontan.
At the same time, John Gayer, Executive Director for Southeast Asia at the US Chamber of Commerce, stressed that US companies have significantly contributed to Indonesia’s economic growth over the years.
“US companies share Indonesia’s vision for achieving high economic growth in the future. The new government has a unique opportunity to align policies to support growth and improve living standards for the Indonesian people,” Gayer remarked.
The report also pointed out that the $67 billion figure noted for US investments in Indonesia over the past decade is much higher than official Indonesian government data. This discrepancy is because the report accounts for all sectors of investment and includes merger and acquisition activities involving US companies in Indonesia.
Key findings in the report include opportunities for advancing renewable energy transitions, human resource development through educational reform, and partnerships with the private sector. However, it also highlighted significant challenges, such as bureaucratic complexities and regulatory issues, which could hinder the establishment of a sustainable investment environment.
The summit emphasized the importance of ongoing collaboration between the US and Indonesia to support Indonesia’s aspirations to join the Organisation for Economic Co-operation and Development (OECD) and to emerge as a leading global economy by 2045.
With the significant impact of US investments in Indonesia, economic cooperation between the two nations is expected to remain strong under President Prabowo Subianto, ensuring continued mutual benefits and a solid foundation for future growth.
Sources: antaranews.com, kontan.co.id
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