Luhut Witnesses RI-US Agreement On Trade Infrastructure Funding At 750 Million Dollars

Indonesian Ambassador to the US Muhammad Lutfi (left), Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan (center), and President of EXIM Bank AS Kimberly Reed (right). (Photo: Antara)

JAKARTA - The governments of Indonesia and the United States (US) signed a Memorandum of Understanding (MoU) regarding infrastructure and trade funding worth US $ 750 million.

The Memorandum of Understanding was signed by the Indonesian Ambassador (Ambassador) to the US Muhammad Lutfi representing the Government of Indonesia and President of Exim Bank AS Kimberly Reed, witnessed by the Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan at the Indonesian Embassy in Washington DC, Wednesday, November 18 local time.

Ambassador Lutfi explained that the bilateral relations between Indonesia and the US were based on shared values in realizing welfare for the people of the two countries, advancing democracy and regional stability.

"This MoU will further strengthen the RI-US economic partnership in an effort to expand the field of investment cooperation and procurement of goods and services," Ambassador Lutfi said in a press release from the Indonesian Embassy in Washington DC, quoted from Antara, Thursday, November 18.

The MoU affirms the commitment of the two countries to strengthen economic cooperation, especially in the field of investment and trade development funding with a value of up to 750 million US dollars. This figure is an increase from the previous agreement value of US $ 500 million in 2017-2018.

Coordinating Minister Luhut Pandjaitan, who witnessed the signing of the MoU, expressed his optimism for the improvement of bilateral relations between Indonesia and the US, with various achievements that have been achieved in the last period, including the extension of the US Generalized System of Preferences (GSP) facility for Indonesia, and the commitment of US participation in infrastructure development in Indonesia.

Meanwhile, President of Exim Bank AS Kimberly Reed emphasized that the agreement was a significant achievement to strengthen the participation of Uncle Sam's country in Indonesia's development in the energy, infrastructure, transportation, information and communication technology, health services, and environment sectors.

"This MoU reflects how important Indonesia is to the US government," said Kimberly.

The MoU is also considered to expand opportunities for Indonesia and the US to work together in the procurement of goods and services for government projects.

In addition, it is also expected to encourage business development opportunities, including in the infrastructure, transportation, energy, mining supply chain infrastructure, environment, communication and information technology, safety and security, health services, and geospatial information sectors.