Remarks by Under Secretary of Commerce for International Trade Marisa Lago at U.S.-Indonesia 75th Anniversary Business Forum

Washington, DC

May 16, 2024

As Delivered

Good morning, everyone. Selamat pagi, and happy belated Indonesian Independence Day!

Special thanks to today's generous hosts: Ambassador Ted Osius and the U.S.-ASEAN Business Council, Chargé d'Affaires Sade Bimantara and the Indonesian Embassy, and Bank Indonesia. What a momentous occasion for this Business Forum, celebrating not only the 75th anniversary of diplomatic relations between the United States and Indonesia, but also the Business Council's 40th anniversary. I'm so pleased to be here today, just a few months after having participated in another reception at the Indonesian Embassy, which likewise celebrated this milestone year for U.S.-Indonesia relations.

As the world's second- and third-largest democracies, the United States and Indonesia share core values of democracy, pluralism and a steadfast commitment to the rules-based international order.

I'm certain that all of us in this room are pleased and proud that when President Jokowi visited Washington last November, he and President Biden elevated our bilateral relationship to a Comprehensive Strategic Partnership. As Southeast Asia's largest economy, Indonesia is not only a crucial commercial and strategic partner to the United States, but is also well-positioned to continue serving as a leader - among your neighbors and globally. In the last two years alone, Indonesia has repeatedly demonstrated this leadership through your successful chairing of ASEAN, your G20 presidency, and your partnership under the Indo-Pacific Economic Framework for Prosperity - or IPEF.

Looking ahead, I'm incredibly bullish about the commercial opportunities before us. Two-way trade is stronger than ever, surpassing $47 billion in goods and services each year - solidifying the United States as one of Indonesia's largest trading partners.

The United States is also a top source of foreign direct investment in Indonesia, reaching nearly $12 billion in 2022 and supporting Indonesia's economic growth in sectors such as mining and manufacturing. In the critical minerals sector, my team looks forward to finalizing the action plan with our Indonesian counterparts to diversify investment, to strengthen supply chain resilience, to secure strong worker and environmental protections, and to promote sustainability in Indonesia's mining sector.

Turning to IPEF, at the U.S. Commerce Department we are thrilled with the progress to date - thanks in no small part to Indonesia's leadership. In addition to graciously hosting a negotiating round in Bali last year, Indonesia continues to lead the way as the IPEF partners operationalize the agreements across the supply chain, clean economy, and fair economy pillars. In June, IPEF held its inaugural Clean Economy Investor Forum to catalyze investment in sustainable infrastructure and climate technology projects. The projects that were presented to global investors include multiple from Indonesian companies - ranging from solar to biofuel.

Special thanks go to the U.S.-ASEAN Business Council for your early and continued support for IPEF. Beyond all the government-to-government engagements, the private sector's active participation is absolutely integral to unlocking and sustaining IPEF's long-term benefits for our countries' businesses, workers and communities.

Alongside IPEF, another avenue by which we're expanding bilateral trade and investment in the green economy is the Clean Energy Working Group, which the U.S. Commerce Department established with Indonesia's Ministry of Energy and Mineral Resources in March 2023. Since then, this Working Group has convened multiple meetings of government and industry representatives across a wide array of topics, including small modular reactors, clean hydrogen and ammonia development, methane abatement, battery energy storage systems, and battery-to-electric vehicle supply chains. In less than three weeks, the Clean Energy Working Group will be holding a convening on sustainable biofuels.

And, later this year, the U.S. Commerce Department will lead a smart cities trade mission to Indonesia - specifically Jakarta, Denpasar, and Nusantara. My team is accepting applications from interested U.S. companies through early September, so I highly encourage the U.S. companies here today to consider joining us. The trade mission will also go to the Philippines. It's a tremendous opportunity to explore business opportunities in two vibrant markets in Southeast Asia.

As we mark 75 impressive years of diplomatic relations and 40 years of the U.S.-ASEAN Business Council's invaluable leadership in the Indonesian business community, we have every reason to be optimistic - and excited - for the commercial breakthroughs that we'll be unearthing in the years to come.

Terima kasih.

Public link

Please use the above public link if you want to share this noodl on another website.