|Indonesia at a Glance|
|Population (2021)||276.79 million|
|GDP (2020)||US$1.058 trillion|
|GDP per capita (2020)||US$4,312|
|Ease of Doing Business Rank (2019)||73|
|U.S. Exports to Indonesia (2019)||$7.7 billion|
|U.S. Imports from Indonesia (2019)||$20.1 billion|
|U.S. FDI in Indonesia (2019)||$12.2 billion|
|Indonesia's FDI in the US (2019)||$399 million|
Bureau of Economic Analysis; the World Bank; IMF; USTR; Trading Economics; Worldometers
The Council maintains dialogues and working relationships with policymakers in the Government of Indonesia and in important think tanks, business groups, and the media in Indonesia. The Council's industry-specific business visits to Indonesia are punctuated each year by its annual Indonesia Business Mission representing all sectors. The business mission provides member delegates with an opportunity to meet the most senior leadership in the Government of Indonesia, to confer with advocacy partners in the business community there and to be briefed by the American Ambassador and his team at the US Embassy.
Indonesia in the United States
The deepening US-Indonesia relationship has resulted in a plethora of visits by Indonesian policymakers and thought-leaders to the United States. The Council invites relevant visitors to meet with Council members. Council members continuing dialogues, in particular, with the Ministers of Trade and Finance, the Chairman of the Investment Coordinating Board, and the international economic advisor to the President.
A Permanent Presence in Jakarta
The Council has fielded a permanent office, led by its Indonesia Representative in Jakarta since 2003. Today, the Council's Chief Indonesia Representatives, Dr. Landry Subianto brings a wealth of Indonesia experience and high-level network to the benefit of Council members. Dr. Subianto and the Council Indonesia Team assist in formulating advocacy strategy, communicating with government officials, clarifing and reporting on government policies and regulations.
Success Stories in Indonesia
In 2007, US-Indonesia economic relations under Trade and Investment Framework Agreement (TIFA) was deepened through the establishment of working groups in four key areas: intellectual property rights, agricultural and industrial goods, services and investment. Under the Obama adminsitration, in 2010, both countries launched the U.S.-Indonesia Comprehensive Partnership, increasing cooperation in health, science, technology and entrepreneurship. In addition, the U.S.-Indonesia Commercial Dialogue, which the Council serves on the Steering Committee of, was launched in November 2011, and focuses on industrial cooperation and trade facilitation through a private sector project process.
On October 29, 2020, the US announced that Indonesia would retain its GSP recipient status with no loss of benefits. Indonesia became a party to GSP in 1980, currently trades 729 types of goods and services, which covers US $ 2.5 billion of export to the US. The extension makes Indonesia the last ASEAN member to fully access the US’s oldest and largest trade preference agreement.
Indonesia is a diverse and culturally-rich archipelago of more than 17,000 islands and 300 ethnic groups, spanning the Indian and Pacific Oceans. It is the world’s third largest democracy and boasts an economy growing at an average of 5.4 percent annually since 2000 (5 percent in 2019 and 4.4 percent forecast for 2021 by the World Bank, reversing the 2.07 percent contraction caused by the COVID-19 pandemic in 2020) – the largest market in Southeast Asia. A member of the G-20 group of nations and of APEC, Indonesia has a permanent presence on the world economic stage.
Historically, Indonesia has been a resource-rich land, integral to spices, rubber and minerals trades, and a center of power for Javanese kings who had created a Southeast Asia-wide tributary system. Portuguese explorers were the first to integrate Indonesia’s natural resource wealth into the European trading system. Colonial powers Spain, the Netherlands, Great Britain and Japan followed, each claiming supremacy over the country. During foreign occupations, however, an Indonesian Independence Movement gained in popularity and power and, under the leadership of Soekarno, ousted the Dutch in 1949. Soekarno was named president and led Indonesia during the turbulent post-colonial era in Southeast Asia, established Indonesia as a leader in the Non-Aligned Movement. Sukarno was replaced by military leader Soeharto in a coup in 1966, who stabilized Indonesia under authoritarian rule, bringing steady economic growth and drawing Indonesia closer to the West, but clamping down on democratic reforms. On August 8, 1967, Indonesia, Malaysia, the Philippines, Singapore and Thailand established the Association of South East Asian Nations (ASEAN).
The global Asian financial crisis followed by the 1998 democratic movement that entailed mass protest and anti-chinese riot had given birth to the 1998 reformation which then unhinged the authoriarian regime under Soeharto. Democratic reform began to set in under Presidents Habibie, Abdurrahman Wahid, Megawati Sukarnoputri and Susilo Bambang Yudhoyono.
In October 2014, Joko Widodo (known as Jokowi) was inaugurated as the seventh President of the Republic of Indonesia and Jusuf Kalla as his Vice-President. In April 2019, he was re-elected and announced his new Cabinet’s five key priorities for his second term, including human development, infrastructure, streamled regulations, simplified bureaucracy, and economic transformation. In November 2020, Jokowi” Widodo signed the Omnibus Law on Job Creation which amends 79 laws and overhauls thousands of regulations that hamper business development and investment in Indonesia. In December, 2020, Jokowi announced a reshuffling of his cabinet and inaugurated six new ministers.