Indonesia, US sign agreement to strengthen bilateral economic ties

The Kadin strengthens bilateral economic synergy with the US Chamber of Commerce through the signing of a memorandum of understanding. (Photo: Antara)

Jakarta (VNA) - The Indonesian Chamber of Commerce and Industry (Kadin) strengthened bilateral economic cooperation with the US Chamber of Commerce with a recently-inked memorandum of understanding.

This agreement, valid for two years, was signed at a significant time following the publication of the US’s National Trade Estimate Report 2025. It is a concrete step by Indonesia to reduce trade barriers, especially non-tariff barriers and to open up opportunities for joint economic growth in the Indo-Pacific region.

Kadin Chairman Anindya Novyan Bakrie described this agreement as a positive step and a breath of fresh air for Indonesia's business sector and workforce.

He noted that the cooperation will expand opportunities for labour-intensive industries that absorb millions of workers. Indonesia is an exporter of several products, namely footwear, rubber, electronics, and garments. Currently, these three industries absorb around 2.1 million workers, he stated.

Bakrie highlighted opportunities to promote two-way trade as Indonesia could import US soybeans for tempeh, cotton for the garment industry, dairy products, and wheat.

Meanwhile, Senior Vice President and Head of International at the US Chamber of Commerce, John Murphy, emphasised the importance of closer collaboration to enhance the economic potential of relations between the two countries.

He also stated that the US Chamber values its longstanding relationship with Kadin and considers the Indonesian market a high priority.

However, Murphy observed that economic relations between the two countries had yet to be optimal. Since 2002, the US has invested over 6 billion USD to support Indonesia's economic growth. The bilateral relationship was elevated to a comprehensive strategic partnership in 2023./.

VNA