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FACT SHEET: Strengthening the U.S.-Indonesia Strategic Partnership

The United States and Indonesia share a deep and enduring strategic partnership anchored in shared values ​​of democracy and pluralism and our shared commitment to a rules-based international order. The United States remains focused on supporting Indonesia’s security and prosperity as we work together to address the climate crisis, promote access to affordable food and energy, strengthen pandemic preparedness and the global health architecture, our vital human relationships expand and act the crises in Burma and Afghanistan. In fiscal year 2022 alone, the US Department of State and the US Agency for International Development plan to provide Indonesia with more than US$150 million in bilateral development and security assistance.

On the sidelines of the G20 Summit in Bali, Indonesia, President Biden and President Widodo will hold a bilateral meeting where leaders will review efforts to accelerate the US-Indonesian partnership across a wide range of shared challenges and opportunities, including the Indo -States will examine -Pacific Economic Framework (IPEF) and the Partnership for Global Infrastructure and Investment (PGII). During the G20, the United States and Indonesia will join with partners to unveil transformative new PGII initiatives that will accelerate Indonesia’s clean energy transition and foster lasting prosperity. And today, President Biden announces the following new initiatives:

Millennium Challenge Corporation (MCC) Compact: The United States and Indonesia have started negotiations to introduce one $698 million MCC Compact backed with US$649 million from the United States and US$49 million from Indonesia. The Compact will support the development of high-quality, climate-conscious transport infrastructure in five provinces; mobilize international capital in support of Indonesia’s development goals, in part by building the capacity of Indonesia’s financial markets; and improving access to finance for Indonesian women-owned and micro, small and medium-sized enterprises.

Sustainable fisheries and marine biodiversity: In partnership with Indonesia’s Ministry of Marine and Fisheries Affairs, USAID is launching two new programs that will protect Indonesia’s marine biodiversity and critical mangrove ecosystems by improving the sustainable and equitable management of fisheries and marine protected areas, and strengthening the resilience of commercial supply chains and communities dependent on fisheries on the effects of climate change.

Carbon Separation: ExxonMobil and Indonesia’s state-owned energy company Pertamina have signed a $2.5 billion agreement to further evaluate the development of a regional carbon capture and capture center in Indonesia. This partnership will enable key industries to reduce carbon emissions, including refining, chemicals, cement and steel, thereby reducing carbon emissions while creating economic opportunities for Indonesian workers, and this agreement will help Indonesia to achieve its net-zero ambitions by 2060 or earlier.

Coast Guard capacity building: Building on the longstanding collaboration between the United States and the Indonesian Maritime Security Agency (BAKAMLA), the United States will now support BAKAMLA’s maritime surveillance drone program. U.S. support will allow BAKAMLA to procure drones, pilot training and maintenance that will greatly enhance BAKAMLA’s capabilities in maritime domain awareness, law of the sea enforcement and combating illegal fishing.

Investing in food security and critical supply chains: The US International Development Finance Corporation will invest $20 million in Indonesian company Aruna Global Technologies to connect Indonesia’s small rural fishermen to the global market through innovative technology platforms that empower women and marginalized communities, reduce food costs and increase the resilience of the people Food supply chains are increasing in the world’s second largest fishing industry.

Reducing Plastic Pollution: USAID will launch a new initiative to support public-private collaboration to reduce land-based sources of marine plastic pollution in line with circular economy principles. USAID will work with local governments, the private sector and community groups to promote integrated waste management, improving waste collection and treatment and strengthening the recycling value chain.

Greening of public transport: The US Department of Commerce and Development is launching a new partnership with MRT Jakarta, which manages the capital’s public rail system, to support the public transportation system’s transition to renewable energy sources.

Investment in the latest energy technology: The US International Development Finance Corporation will support HDF Energy’s investment in a portfolio of green hydrogen projects in Indonesia called “Renewstable” that combines renewable energy with battery and green hydrogen-backed storage to provide stable and reliable power to power grids.

Conservation of biodiversity: USAID plans to launch a new partnership with the Indonesian Ministry of Environment and Forestry to protect orangutans and other endangered species such as elephants, tigers and rhinos in Sumatra and Kalimantan. This partnership will improve conservation data collection; facilitating collaboration between local government, the private sector and communities; and reduce human-wildlife conflict.

Supporting Ports and Fisheries in the Pacific: The United States and Indonesia have committed to a partnership to improve port and fisheries stewardship in the Pacific. Leveraging Indonesia’s expertise in port and fisheries management and logistics, and in coordination with Pacific partners, the United States and Indonesia will deploy technical experts to the region to support critical Pacific ports and fisheries needs.

Educational cooperation: Building on the bilateral memorandum of understanding on educational cooperation signed by the United States and Indonesia in December 2021, the United States has now committed resources to a 30 percent increase in educational guidance centers in Indonesia, which will provide Indonesian students with new opportunities to study in the United States . Additionally, Peace Corps volunteers and Fulbright scholars and educators will return to Indonesia in January 2023 after a multi-year hiatus due to the COVID-19 pandemic.

Piloting innovative medical technologies: The US Agency for Trade and Development and GE Healthcare announced plans to jointly fund a pilot project to help the Indonesian Ministry of Health (MoH) develop a National Image and Data Repository (NIDR) and a new cloud-based central repository for electronic Medicine to create records and a hub-and-spoke network connecting GPs in primary care settings with cardiologists in a central hospital.

Supporting sustainable development in Indonesia’s new capital: USAID is working with the Ibu Kota Nusantara Authority, established by President Widodo to oversee the Indonesian capital’s relocation, to provide project management support and technical assistance in the development of the new capital, with a focus on Smart City and “Forest City” -Principles.

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