Top US Firms Hold Talks with Indonesian Govt on Domestic Certification

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April 28, 2025 | 04:27 pm

TEMPO.CO, Jakarta - Coordinating Minister for the Economy Airlangga Hartarto, the Indonesian Delegation Coordinator, and the Tariff Negotiation Team with the United States, met with Ambassador Ted Osius, also the President and CEO of the United States-ASEAN Business Council (US-ABC).

During the meeting, the Indonesian government conveyed the steps and policies being prepared to support a more open and competitive investment and trade climate, including the relaxation of domestic component-level policies (TKDN). In addition, the meeting discussed several important issues to strengthen economic relations with the private sector.

"We are grateful for the input from US-ABC, and we are committed to creating policies that support investment and building mutually beneficial partnerships," said Airlangga in a statement in Washington, DC, United States, on Wednesday, April 23, 2025.

The leaders of giant U.S. companies present at the Round Table Discussion organized by the US-ABC included Amazon, Boeing, Cargill, Cisco, Freeport, Lockheed Martin, and Pfizer. Meanwhile, the Deputy for Coordination of Economic Cooperation and Investment of the Coordinating Ministry for the Economy, Edi Prio Pambudi, and the Acting Head of the Economic Affairs of the Republic of Indonesia Embassy (KUAI KBRI), Washington DC, Ida Bagus Bimantara, represented Airlangga for the technical discussion session.

The meeting between the Indonesian government and U.S. private sector players also discussed various technical issues and the implementation of several strategic policies. This includes cooperation that can be agreed upon in dealing with reciprocal tariff policies or tariffs set by U.S. President Donald Trump.

Regarding the relaxation of the TKDN policy, the Indonesian government is specifically targeting the information and communication technology (ICT) and health sectors. Additionally, Indonesia shared its efforts to facilitate trade by simplifying import procedures, customs duties, and strengthening commodity balance policies to be more adaptive to the international industry and trade needs.

In the meeting, US-ABC emphasized the importance of the synergy established with Indonesia in driving digital transformation. Furthermore, Amazon and Cisco committed to supporting Indonesia in becoming a data center hub for developing artificial intelligence (AI) ecosystems.

In its statement, the Indonesian government mentioned that regions like Batam and Bintan have been developed as free trade zones for data centers and digital economies, crucial in facilitating investments from U.S. technology giants. Additionally, cooperation with the private sector, including US-ABC, is crucial in supporting Indonesia's position in the Trump tariff negotiation process.

Subsequently, US-ABC expressed appreciation for the government's initiative to gather input from the private sector to formulate strategic steps regarding Trump's tariff policies. US-ABC also expressed support for the government in implementing efforts to deal with U.S. tariff policies and strengthen bilateral relations.

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