Indonesia and the United States: A Partnership for Inclusive Growth

In a recent discussion with CNN, Anindya Bakrie, Chairman of Kadin Indonesia, emphasized the importance of enhancing economic ties between Indonesia and the United States. He highlighted how these partnerships could foster mutual benefits, especially in areas such as renewable energy, digital transformation, and empowering micro, small, and medium enterprises (MSMEs).

Demographic Advantage and MSME Empowerment

Indonesia, with over half of its population below the age of 30, holds a significant demographic advantage. According to Anindya, this young and dynamic workforce is key to driving technological innovation, economic growth, and social progress. However, tapping into this potential requires a strong focus on MSMEs, which contribute around 60% of Indonesia's GDP and employ the majority of the workforce.

Kadin Indonesia has prioritized MSME growth by advocating for digital transformation and skills development. Collaborating with the U.S., which has a robust entrepreneurial ecosystem, could provide Indonesian MSMEs with access to training, technology, and global markets. Anindya stressed that this collaboration aims not just to boost exports but also to create an inclusive and resilient economy.

Renewable Energy and Sustainability

Indonesia’s commitment to achieving net-zero emissions by 2060 offers another avenue for collaboration. Renewable energy projects, including solar and geothermal initiatives, require significant investment, estimated at $25 billion annually. The U.S., already a major investor in Indonesia, has the opportunity to support these green infrastructure projects, aligning with global sustainability goals while fostering economic growth.

Enhancing Investment Climate

For Indonesia to attract more foreign direct investment (FDI), Anindya highlighted the need for a stable investment ecosystem. Legal certainty, an efficient supply chain, and workforce readiness are critical factors. The U.S. has consistently been a top investor, contributing $2.5 billion in 2023 alone, and continued efforts to streamline investment policies could further boost this figure.

Overcoming Challenges Together

While Indonesia has much to offer, challenges such as unemployment and the need for economic diversification remain. Anindya pointed out that strategic partnerships with the U.S. could address these issues through shared expertise in innovation and education. The upcoming APEC Summit in Lima will serve as a platform to discuss these initiatives further, with Kadin Indonesia playing a pivotal role in shaping the dialogue.

Conclusion

The partnership between Indonesia and the U.S. represents a significant opportunity for economic transformation. By focusing on MSME empowerment, renewable energy, and creating a conducive investment climate, both nations can achieve sustainable and inclusive growth. As Kadin Indonesia leads these efforts, the future looks promising for deeper bilateral ties that benefit businesses and communities alike.