07 May '25

Indonesia and the US Forge Stronger Economic Bonds: A Boost for Businesses and Workers

New Agreement Signals Enhanced Cooperation and Opens Doors for Growth in the Indo-Pacific Region

JAKARTA – In a move poised to invigorate economic ties, the Indonesian Chamber of Commerce and Industry (Kadin) and the US Chamber of Commerce have formalized a memorandum of understanding aimed at boosting bilateral cooperation. This agreement, which is set for a two-year duration, arrives at a crucial juncture, closely following the release of the US's National Trade Estimate Report 2025.

The agreement represents a tangible effort by Indonesia to reduce trade barriers, particularly non-tariff barriers, thereby unlocking fresh avenues for shared economic advancement in the Indo-Pacific area.

Kadin Chairman Anindya Novyan Bakrie hailed the agreement as a positive development, a "breath of fresh air" for Indonesia's business sector and workforce. He underscored the potential for the collaboration to expand prospects for labor-intensive industries, which provide employment for millions of workers. Indonesia, a significant exporter of products like footwear, rubber, electronics, and garments, currently sees these sectors employing approximately 2.1 million individuals, as stated by Bakrie.

Bakrie also pointed out opportunities to boost two-way trade. He highlighted Indonesia's potential to import US soybeans for the production of tempeh, cotton for the garment industry, as well as dairy products and wheat.

John Murphy, Senior Vice President and Head of International at the US Chamber of Commerce, underscored the importance of greater collaboration to maximize the economic potential of the relationship between the two nations. He stated that the US Chamber cherishes its enduring relationship with Kadin, recognizing the Indonesian market as a high priority.

Murphy noted that while the US has invested over US$6 billion in Indonesia’s economic growth since 2002, the economic relationship between the two countries has yet to reach its full potential. The bilateral relationship was elevated to a comprehensive strategic partnership in 2023.

Other Versions

Justice • 08 Apr '25

A life in Taiwan

Indonesia and the US Forge Stronger Economic Bonds: A Boost for Businesses and Workers

New Agreement Signals Enhanced Cooperation and Opens Doors for Growth in the Indo-Pacific Region

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