Airlangga Optimistic That Indonesia Can Accelerate Economic Growth And Sustainable Investment

Coordinating Minister for Economic Affairs Airlangga Hartarto expressed his optimism for strengthening relations between the Indonesian and US business communities.

Airlangga expressed this during a Roundtable Lunch meeting organized by the US-ASEAN Business Council (US-ABC). Where, there are various potential collaborations in increasing food productivity, where the Government has launched a food estate program, the development of rice fields for rice crops, and the sugar industry.

In addition, there is also the potential for cooperation in the field of new and renewable energy, such as hydropower, geothermal, carbon capture and storage, and small modular reactor, which can help Indonesia to achieve the Net Zero Emission target.

Airlangga also conveyed the latest developments in the Indonesian economy, the priority of the new government, and the Government's strategy towards Indonesia Gold 2045.

According to Airlangga, Indonesia's economic fundamentals are maintained in the midst of a world facing global economic challenges, such as geo-economic fragmentation, price spikes due to geopolitical tensions, and high interest rates that exacerbate debt burdens.

"Indonesia's economy grew strongly by 5 percent in the early semester of 2024. Economic growth rates were driven by low and controlled inflation in the target range, and debt-to-GDP ratios were also under control. This condition provides a solid basis for national economic stability," Airlangga said in his statement, quoted on Sunday, November 24.

US-ABC Senior Vice President (Policy) Marc Mealy expressed confidence that economic cooperation between the United States and Indonesia will develop even more in the future.

"The change of government in the two countries is expected to bring fresh air that opens up new opportunities to strengthen bilateral relations and expand business relations in various sectors," he explained.

Regarding the acceleration of industrial downstreaming, the meeting noted various important achievements in 2024, including the start of the operation of the largest EV battery facility in Southeast Asia and the world's largest single line copper processing facility.

Airlangga said this achievement was an important step in strengthening the competitiveness of Indonesia's industry at the global level and encouraging a more sustainable economic transformation.

Meanwhile, the companies present also paid attention to Indonesia's efforts to encourage an increase in economic standards through OECD, in line with Indonesia Gold's 2045 vision which is expected to be able to accelerate reform on the issue of environmental, social, and governance (ESG) issues, increase Indonesia's influence on global leadership, and improve investor confidence.

In addition, Indonesia is also expected to encourage investment through the provision of fiscal incentives that continue so that it can encourage job creation, facilitate transfer of new skills and technology, and increase economic growth.

Answering questions from several companies regarding the influence of the new government on business ecosystems and opportunities to invest in Indonesia, Airlangga emphasized that government change is not an obstacle, it opens up opportunities for companies to be able to invest, so that they can contribute to creating new jobs in Indonesia.

Regarding Indonesia's infrastructure readiness to receive investment from outside, Airlangga emphasized Indonesia's readiness to receive incoming investments, shown, among others, by the existence of 22 Special Economic Zones that provide convenience and incentives for investors.

Airlangga expressed his appreciation to the US-ABC and all the companies present, and invited US business circles to immediately develop investment in Indonesia towards sustainable development.