The total value of the United States and Indonesia's bilateral economic relationship is estimated to grow by 46 percent to $131.7 billion from 2014 to 2019, a report from the US Chamber of Commerce and American Chamber of Commerce in Indonesia, or AmCham Indonesia, revealed.(JG Photo/Muhamad al Azhari)
US-Indonesia's Bilateral Economic Relationship to Grow 46%: AmCham
BY :MUHAMAD AL AZHARI
SEPTEMBER 15, 2016
Jakarta. The total value of the United States and Indonesia's bilateral economic relationship is estimated to grow by 46 percent to $131.7 billion from 2014 to 2019, a report from the US Chamber of Commerce and American Chamber of Commerce in Indonesia, or AmCham Indonesia, revealed.
The report — which was released during the fourth annual US-Indonesia Investment Summit in Jakarta on Thursday (15/09) — seeks to quantify Indonesia's relationship with the US in terms of foreign direct investment, trade, domestic sales, finance and government revenue.
“This report succinctly captures the enormous importance of the economic relationship between the two countries,” Myron Brilliant, US Chamber of Commerce executive vice president and head of international affairs, said.
“Even more striking than the size of the economic interaction is the potential for further growth, if the investment environment is welcoming,” he said.
However, growth will still depend on various factors, including actions taken by both governments and how successful the series of economic reforms taken by Indonesia's government prove to be.
The report highlighted that Indonesia needs to have greater legal certainty, improve collaboration and communication between policy makers and the private sector, help boost innovation and speed up bureaucratic and policy reforms to boost the economic relationship between the two nations.
Sentiments of US companies in Indonesia
The report also unveiled findings from a survey of executives of US companies in Indonesia. According to the report, 87 percent of those surveyed felt there had been "some improvement" in the investment climate under President Joko "Jokowi" Widodo's administration.
The survey also showed that 100 percent of respondents believed that the 12 economic reform packages will have "some impact" on the investment climate. However, when asked how the packages have impacted their businesses, 75 percent of respondents said it is too early to tell.
The report also identified industry sectors that they believe have a high degree of future potential. These include the creative economy, finance and infrastructure.
US companies have a strong presence in the consumer goods, agriculture and oil and gas sector in Indonesia.