The Indonesian Coordinating Minister for Economic Affairs announced several investment commitments from US-based companies in sectors such as clean energy, digital technology, and healthcare, noting that the US is one of Indonesia’s key trading partners with an 11.2% export share. He added that the US ranked among Indonesia’s top five investors in 2024, contributing a total of USD 3.7 billion.
The minister noted that the latest investment commitments demonstrate strong confidence in Indonesia’s economic prospects, particularly in the wake of a recent trade agreement between the two countries. Among the largest plans is ExxonMobil’s exploration of a USD 10 billion carbon capture and storage (CCS) facility. At the same time, in the technology sector, global giants such as Oracle, Microsoft, and Amazon have signaled interest in expanding their operations in Indonesia.
The minister revealed that Oracle plans to invest USD 6 billion in data center projects, Microsoft will allocate USD 1.7 billion to develop cloud and artificial intelligence infrastructure, and Amazon intends to invest up to USD 5 billion to expand its artificial intelligence and cloud facilities.
In the healthcare sector, General Electric, through GE Healthcare, will partner with Kalbe Farma to establish Indonesia’s first CT scanner manufacturing facility in West Java, with an initial investment estimated at IDR 178 billion (approximately USD 11 million).
The minister highlighted that the government’s successful trade negotiations preserved an estimated one million jobs in labor-intensive sectors. Under the previous arrangement, Indonesian products faced a 32% US import tariff, which has now been reduced to 19% under the new agreement. In exchange, Indonesia will remove about 99% of tariff barriers on a range of US industrial and agricultural goods. In comparison, the US will maintain the 19% tariff on Indonesian exports and consider further reductions for commodities not produced domestically.
Indonesia has pledged to remove non-tariff barriers by exempting certain US goods from local content requirements and recognizing FDA certification for US health and pharmaceutical products. In the area of digital trade, the country has committed to ensuring legal certainty for cross-border data transfers and maintaining support for the WTO moratorium on import duties for electronic transmissions.
(Source: ANTARA News)
