Jakarta, Indonesia - Organized by the U.S. Chamber of Commerce and the American Chamber of Commerce in Indonesia (AmCham Indonesia), the 11th annual U.S.-Indonesia Investment Summit concluded today, urging Indonesia’s next government—upon taking office next year—to expand upon President Joko Widodo’s economic reforms and bolster Indonesia’s investment climate.
U.S. Chamber of Commerce Executive Director for Southeast Asia John Goyer said, “Indonesia’s successful term as president of the G20 last year, followed by its chairing the Association of Southeast Asian Nations this year, have demonstrated to the world that Indonesia is a force to be reckoned with. The U.S. has consistently been one of the largest foreign investors in Indonesia, and U.S. private sector investment in Indonesia continues to rise. As the U.S. and Indonesia reactivate talks under the bilateral Trade and Investment Framework Agreement for the first time since 2018, the U.S. Chamber looks forward to continue its role as an advocate for business in the U.S.-Indonesia relationship, a relationship that helps drive prosperity and free enterprise across the Indo-Pacific.”
This year’s summit featured U.S. Ambassador to Indonesia Sung Y. Kim, and Indonesian government leaders including the Coordinating Minister for Economic Affairs Airlangga Hartarto; Minister of Finance Sri Mulyani Indrawati; Minister of Tourism and Creative Economy Sandiaga Uno; and Minister of Health Budi Gunadi Sadikin.
The U.S. Chamber and AmCham Indonesia released a report during the summit, “Progress and Greater Promise Ahead”, advancing the following recommendations for Indonesia to unlock its economic growth potential:
- Eliminate bureaucratic red tape stymieing two-way trade and investment
- Simplify tax procedures
- Reassess restrictive trade and investment policies
- Foster a conducive environment for the digital economy
- Increase productive dialogues between the U.S. and Indonesian public and private sectors
- Deepen education reforms.
“A lot has been accomplished over the last ten years,” recognized AmCham Indonesia Managing Director A. Lin Neumann, “but much remains to be done if Indonesia is going to accomplish its ambitious goals and avoid the middle-income trap.”
Key takeaways from the Summit included reflections and recommendations on:
Private Sector Engagement. Indonesia’s government has been increasingly open to engaging the private sector in formulating economic policies. The Summit featured discussions on the private sector's experience working with President Widodo, with speakers from the U.S. and Indonesian business communities. Indonesia’s next government needs to similarly ensure active engagement with the private sector, and vice versa.
Multi-Stakeholder Collaboration for Sustainable Investment. Indonesia is pushing the development of its new capital city Nusantara as the template for its cities of the future. Concurrently, it needs to ensure this ambition is aligned with sustainability commitments. The Summit discussed a broader vision for creating a green, sustainable environment through investment, and how different stakeholders – the government, private sector, and NGOs – play respective roles.
Post-Election Economic Reform. Indonesia expects peaceful and stable 2024 elections, with participants expressing that President Widodo leaves big shoes to fill for the next president. Several of President Widodo’s top ministers shared their insights on economic reforms under his leadership, lessons learned, and expectations of the next government.
