Ahead of IPEF Meetings, US Commerce Secretary Supports Strengthening Indonesia’s Economy – Economy
n this occasion, Minister Airlangga expressed his gratitude for the United States’ support regarding Indonesia’s accession to become a member of the OECD. The meeting, held on the sidelines of the IPEF Ministerial Meetings, was full of warmth and aimed to strengthen the cooperation between the two countries, which is currently formed under the RI-US Comprehensive Strategic Partnership, one of which is through the IPEF partnership.
“Indonesia has a Special Economic Zone for Data Centers in Batam, supported by a renewable energy grid. Therefore, we also hope that the United States will support the development of Data Centers and the ongoing fiber optic cable network in Indonesia,” said Minister Airlangga.
Responding to this, Secretary Gina Raimondo expressed her support, which will be implemented through the IPEF scheme. Additionally, it was conveyed that many companies are interested in developing Data Centers in Indonesia and are expecting full support from the Indonesian Government, including ease of business licensing.
Secretary Gina Raimondo was also very enthusiastic about Indonesia’s role in the IPEF and mentioned that she had specifically invited 23 investors from the United States to participate in the Clean Economy Investor Forum, which is part of this IPEF meeting series. The US investors attending the IPEF meeting this time hope to invest soon in IPEF partner countries, especially Indonesia.
Minister Airlangga also highlighted various investment opportunities in Indonesia’s new and renewable energy sectors, including carbon capture and storage, solar panels, and geothermal.
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“Indonesia is very open to US companies in the energy sector operating in Indonesia. We will propose 19 infrastructure projects focused on the energy sector, and we look forward to investments from the United States,” said Minister Airlangga.
As a country with significant potential to receive funds from the International Technology Security and Innovation (ITSI) Fund, Indonesia desires the US Government to encourage semiconductor and artificial intelligence manufacturers to build industries in Indonesia. Additionally, Indonesia expects US support for investments as the OECD will review Indonesia’s semiconductor ecosystem.
To accelerate the energy transition, Indonesia is ready to meet international standards in labor and environmental fields. The Indonesian Government will also continue to work with the United States to finalize the Critical Minerals Agreement to achieve common goals in a faster and more sustainable energy transition.
Regarding Small Modular Reactors (SMRs), Minister Airlangga mentioned that Indonesia is very open to SMR investment implementation. Secretary Gina Raimondo responded that the US Government would support Indonesia’s request and further discussions on the energy transition project. The US Government hopes the IPEF ratification process will proceed according to the expected schedule and targets.
“We hope this cooperation will promote the growth of high-tech industries in Indonesia, create new jobs, and increase Indonesia’s global competitiveness,” concluded Minister Airlangga.
Closing the meeting, Minister Airlangga invited the US Government to continue their determination and commitment through comprehensive cooperation in the Indo-Pacific region and enhance economic resilience in the area.
Also present at the meeting were Indonesia’s Ambassador to Singapore Suryopratomo, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto, and Assistant Deputy for Economic Cooperation in America and the Pacific of the Coordinating Ministry for Economic Affairs Irwan Sinaga.
This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia
