Indonesia and the US Strengthen Investment and Manufacturing Partnership

Indonesia and the United States (US) continue to strengthen their industrial partnership through increased investment, the reinforcement of global supply chains, and the development of manufacturing and technology ecosystems. This was the focus of a meeting between Indonesian Ambassador to the US Indroyono Soesilo, along with staff from the Indonesian Embassy in Washington DC, and the US Chamber of Commerce and AmCham Indonesia on Thursday, as cited in an embassy press release on Saturday (27/6). During the meeting, the Indonesian government offered various investment opportunities, ranging from its large domestic market to the growth of the digital economy, which increased from 82 billion US dollars in 2023 to 99 billion US dollars (approximately Rp1,768 trillion) in 2025. “Indonesia has talents who have studied in the United States and are ready to contribute to supporting investment and knowledge transfer,” said Indroyono. According to him, the government is also continuously improving regulations, including through Government Regulation Number 28 of 2025 on Risk-Based Business Licensing and the provision of the Bappenas Blue Book, which contains a list of priority projects for foreign investors, including those from the US. The meeting, part of the “Door Knock Meeting American Chamber of Commerce Asia Pacific” series, was attended by representatives from the US Chamber of Commerce, AmCham Indonesia, Boeing Indonesia, Nike, Hamilton Beach, and Freeport-McMoRan. In the aviation sector, Boeing presented opportunities for Indonesia’s national industry to enter the company’s global supply chain. Boeing’s cooperation with PT Dirgantara Indonesia is one ongoing collaboration. Indonesia is also projected to become the world’s fourth-largest passenger aircraft market by 2036, with an estimated need for at least 600 new Boeing 737-class aircraft. Beyond supporting aviation industry development, Boeing is also collaborating with the Bandung Institute of Technology (ITB) through a University Leadership Development programme and has established a partnership with Pertamina to develop sustainable aviation fuel (SAF) from vegetable oil. In the manufacturing sector, Nike has made Indonesia one of its primary footwear production bases, employing around 500,000 workers, with approximately 90 per cent of its production destined for export. Meanwhile, Hamilton Beach is building a household electronic appliance factory in the Batang Industrial Estate, Central Java. In the energy and natural resources sector, American companies such as ExxonMobil and Freeport-McMoRan remain strategic partners in bilateral economic cooperation. During the meeting, investors affirmed that Indonesia remains a priority investment destination. However, they also highlighted the importance of regulatory certainty, ease of doing business, and the resolution of non-tariff barriers to make Indonesia more competitive compared to other countries in the region. Vice President of the US Chamber of Commerce for the US-ASEAN Business Committee John Goyer expressed hope that the US-Indonesia Investment Summit, scheduled to be held in Jakarta in October 2026, will yield concrete cooperation and contract signings between Indonesian and American companies. He also invited Indonesian business players to participate in the B-20 forum in Washington DC on 9-11 November 2026, which will run concurrently with the G20 Summit. According to data from the US Trade Representative, the trade value between Indonesia and the United States in 2025 reached 45.7 billion US dollars.