Indonesia explores cooperation ranging from food security to AI with the US
Jakarta (ANTARA) - Indonesia is exploring opportunities for cooperation in the food, aviation, mining, defence, technology, and artificial intelligence (AI) sectors to enhance economic relations with the United States (US). These discussions emerged during a meeting between the Indonesian Ambassador to the US, Indroyono Soesilo, and a group of American companies in Washington on Tuesday (28/7), organised by the US-ASEAN Business Council.
“The economic relationship between Indonesia and the United States should not stop at trade figures,” said Ambassador Indroylar Soesilo in a written statement from the Indonesian Embassy in Washington DC. “What is far more important is how trade and investment can create added value, strengthen national industries, create jobs, improve human resource quality, and bring new technologies to Indonesia.”
The meeting demonstrated the broad spectrum of US business interests in Indonesia. In the aviation sector, Boeing maintains a long-term relationship with Indonesia through the use of commercial aircraft by national carriers, while also presenting opportunities to strengthen the domestic aircraft component supply chain and industry. In the defence and aerospace sector, Lockheed Martin is one of the companies identifying opportunities for cooperation in modernising main weapon systems and strengthening national industrial capacity.
In the mining sector, Freeport-McMoRan, through PT Freeport Indonesia, remains a vital part of mineral resource management, including investments in mining infrastructure and mineral processing and refining facilities. The food sector also serves as a fundamental pillar of the economic relationship between the two nations. Cargill plays a role in the trade of commodities such as maize, soybeans, and wheat, while Caterpillar has been supplying heavy equipment for the mining and construction sectors in Indonesia since 1971. In the consumption and sustainability sector, PepsiCo is undertaking various environmental initiatives, including packaging management and tree planting.
Furthermore, the Ambassador noted that technological developments are introducing a new dimension to the Indonesia-US economic relationship. NVIDIA, for instance, is involved in AI talent development alongside the Indonesian Ministry of Higher Education, Science, and Technology. The Walmart Foundation is also supporting the strengthening of sustainable supply chains and farmer welfare, while Chubb is contributing to the development of financial literacy and risk management.
During the meeting, the Director of the Indonesia Investment Promotion Center (IIPC) New York, Tessal Maharizey Febrian, reported that US investment in Indonesia reached approximately US$1.7 billion in the first half of 2026. In 2025, Indonesia’s exports to the US reached approximately US$31 billion, accounting for about 11 per cent of Indonesia’s total global exports. Bilateral trade between the two nations was recorded at approximately US$43.8 billion.
Key Indonesian exports to the US include electronics (US$6 billion), textiles (US$4.9 billion), footwear (US$2.8 billion), palm oil (US$2.1 billion), furniture (US$1.4 billion), and fishery products (US$1.2 billion). Conversely, Indonesia imports various products from the US, including soybeans, cotton, wheat, aircraft and aerospace/satellite products, machinery, medical products, chemicals, and information and telecommunications technology.
According to Ambassador Indroyono, these figures indicate that the economic relationship between Jakarta and Washington has a strong foundation but possesses significant room for further growth. Given its large domestic market, strategic natural resources, important geographical position, and ongoing digital transformation and industrialisation agendas, Indonesia has the opportunity to expand partnerships with US companies.
However, he highlighted several areas that require strengthening, including the protection of copyright and intellectual property rights, regulatory consistency between central and regional governments, logistics efficiency, and the improvement of human resource quality. US business players at the meeting also provided feedback regarding the investment climate in Indonesia. The reform of licensing through Government Regulation (PP) Number 28 of 2025 regarding Risk-Based Licensing was viewed as a positive step towards creating certainty and ease of doing business.
These inputs are crucial as competition to attract global investment intensifies, Indroyono stated. He emphasised that Indonesia is not only competing for capital but must also position itself as a place where technology, talent, industry, and global supply chains can grow together. Cooperation between Indonesia and the US is expected to not only increase investment and export values but also elevate Indonesia within the global value chain—transitioning from a raw material supplier to a nation increasingly strong in processing, technology, innovation, and human resources, according to the Indonesian Embassy in Washington DC.