Modernizing Trade Ties: Indonesia Strengthens Economic Synergy with the US
United States and Indonesia ink accord to boost mutual economic relations
In a groundbreaking move, the Indonesian Chamber of Commerce and Industry (Kadin) has solidified its economic partnership with the United States (US) Chamber of Commerce, inking a monumental Memorandum of Understanding (MoU). This agreement, signed at a crucial juncture following the revelation of the US's National Trade Estimate Report 2025, marks a significant stride for Indonesia in overcoming trading barriers, particularly non-tariff barriers, and paving the way for joint economic expansion in the Indo-Pacific region.
The announcement by Kadin Chairman, Anindya Novyan Bakrie, was met with enthusiasm, heralding this cooperation as a positive leap forward for Indonesia's business sector and workforce. Bakrie elucidated that this partnership would open up opportunities for labor-intensive industries, including footwear, rubber, electronics, and garments, which currently employ a staggering 2.1 million workers.
indenting the possibilities, Bakrie suggested potential U.S. exports, such as soybeans for tempeh, cotton for the garment industry, dairy products, and wheat.
Speaking on behalf of the US Chamber of Commerce, Senior Vice President and Head of International, John Murphy, underlined the importance of closer collaboration to maximize the economic potential between the two nations. He underscored the US Chamber's strong relationship with Kadin and emphasized the priority it places on the Indonesian market.
Although the economic relationship between the two countries has yet to reach its full potential, Murphy pointed out that the US has invested over $6 billion since 2002 to bolster Indonesia's economic progress. The bilateral relationship was elevated to a comprehensive strategic partnership in 2023.
This two-year agreement, destined to revolutionize trade ties, aims to reduce non-tariff trade barriers and enhance market access, particularly within the Indo-Pacific region, thus driving Indonesia forward in addressing challenges highlighted in the U.S. National Trade Estimate Report 2025. Additionally, it focuses on public nutrition (dairy) and raw materials for labor-intensive industries, paving the way for U.S. businesses to tap into Indonesia’s market and vice versa.
The Indonesian Chamber of Commerce and Industry (Kadin) strengthens bilateral economic synergy with the United States (US) Chamber of Commerce through the signing of a memorandum of understanding. - Photo from ANTARA/HO-Kadin Indonesia
The US Chamber of Commerce has long been a key player in fostering investment growth and establishing structured collaboration, with the MoU providing a framework for regular dialogues between industry leaders and joint efforts to tackle market access barriers. This agreement underscores Indonesia's commitment to bilateral economic growth and the potential for an economically vibrant future for both nations.
- The Memorandum of Understanding between Kadin and the US Chamber of Commerce aims to reduce non-tariff trade barriers, enhancing market access, particularly within the Indo-Pacific region.
- The agreement focuses on public nutrition and raw materials for labor-intensive industries, opening opportunities for U.S. businesses to tap into Indonesia’s market, and vice versa.
- Kadin Chairman, Anindya Novyan Bakrie, noted that this partnership would benefit labor-intensive industries such as footwear, rubber, electronics, and garments, employing 2.1 million workers.
- John Murphy, Senior Vice President of the US Chamber of Commerce, underscored the US Chamber's strong relationship with Kadin and emphasized the priority it places on the Indonesian market.
- Indonesian industries, including trade and business, are expected to absorb American exports like soybeans for tempeh, cotton for the garment industry, dairy products, and wheat.
- The bilateral relationship between the US and Indonesia was elevated to a comprehensive strategic partnership in 2023, and since 2002, the US has invested over $6 billion to bolster Indonesia's economic progress.
