Wahyu Dwi Anggoro
IDXChannel - United States (US) private investment in Indonesia generated an economic impact of USD130 billion between 2014 and 2023, stemming from direct investments totaling USD67 billion, according to a report.
The US Investment: A Partner in Innovation for Indonesia report was released by the American Chamber of Commerce in Indonesia (AmCham Indonesia) in partnership with EY Indonesia and launched during the US-Indonesia Investment Summit this week.
The investment summit convened Indonesian ministers and US business leaders to discuss critical areas including renewable energy, digital transformation, and health sector development as Indonesia transitions to President Prabowo Subianto’s new emphasis on digitalization and energy security.
“This Summit and the release of the 2024 US-Indonesia Investment Report highlight the significant role of American investment in Indonesia’s economy,” said U.S. Ambassador to Indonesia Kamala Shirin Lakhdhir in a statement.
“The report shows a USD130-billion economic impact due to US investments, emphasizing the strong connection between high-quality US private sector investment and Indonesia’s sustained economic growth," she added.
The report underscores that US investment has been a key driver of Indonesia’s economic transformation, with impact extending far beyond direct financial investment through technology transfer, job creation, and innovation.
Notably, the impact of US tech giants in Indonesia extends far beyond the amount of dollars invested as they improve the knowledge, skills, and abilities of Indonesia’s workforce.
The research points to several key challenges and opportunities for expanded cooperation as Indonesia pursues its goal of becoming a leading global economy by 2045, including the need to address regulatory uncertainty, accelerate digital innovation, and develop human capital through education reforms. (Wahyu Dwi Anggoro)
