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

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The United States and Indonesia share a deep and enduring strategic partnership, rooted in shared values ​​of democracy and pluralism, and our shared commitment to the rules-based international order. The United States remains focused on supporting Indonesia’s security and prosperity, while working together to address the climate crisis, promote access to affordable food and energy, strengthen preparedness for a pandemic and the global health architecture, expanding our important people-to-people ties, and addressing the crises in Burma and Afghanistan. In fiscal year 2022 alone, the U.S. Department of State and the U.S. Agency for International Development plan to provide Indonesia more than $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, during which the leaders will review efforts to accelerate the U.S.-Indonesia partnership on a wide range of challenges and shared opportunities, including through the Indo-Pacific Economic Framework (IPEF) and the Global Infrastructure and Investment Partnership (PGII). At the G20 Summit, the United States and Indonesia will join partners in unveiling transformative new PGII initiatives that will accelerate Indonesia’s clean energy transition and drive sustainable prosperity. And today, President Biden is announcing the following new initiatives:

Compact Millennium Challenge Corporation (MCC): The United States and Indonesia have successfully concluded negotiations to launch a $698 million MCC Compact, backed by $649 million from the United States and $49 million from Indonesia. The Compact will support the development of high-quality, climate-friendly transport infrastructure in five provinces; mobilize international capital in support of Indonesia’s development objectives, in part by building the capacity of Indonesia’s financial markets; and increasing access to finance for Indonesian women-owned businesses and micro, small and medium enterprises.

Sustainable fishing and marine biodiversity: In partnership with the Indonesian Ministry of Marine Affairs and Fisheries, 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 building the resilience of commercial supply chains and fishing-dependent communities to the impacts of climate change.

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

Coast Guard Capacity Building: Building on longstanding cooperation 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 enable BAKAMLA to procure drones, pilot training, and maintenance that will significantly improve BAKAMLA’s capabilities related to maritime domain awareness, maritime law enforcement, and the fight against illegal fishing. .

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

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

Greening public transit: The United States Trade and Development Agency is launching a new partnership with MRT Jakarta, which operates the capital’s public rail system, to support the transit system’s transition to renewable energy sources.

Investing in advanced energy technology: The U.S. International Development Finance Corporation will support HDF Energy’s investment in a portfolio of green hydrogen projects in Indonesia called “Renewstable,” which combines renewable energy with batteries and green hydrogen storage to provide stable power and reliable to electrical networks.

Preserving biodiversity: USAID plans to launch a new partnership with the Indonesian Ministry of Environment and Forests on the conservation of orangutans and other vulnerable species such as elephants, tigers, and rhinos in Sumatra and Kalimantan. This partnership will improve conservation data collection; facilitate 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 are committed to working together to improve the administration of ports and fisheries in the Pacific. Leveraging Indonesia’s expertise in port and fisheries administration and logistics, and working with Pacific partners, the United States and Indonesia will send technical experts to the region to meet the needs reviews of harbors and fishing in the Pacific.

Cooperation in education: Building on the bilateral Education Cooperation Memorandum of Understanding signed by the United States and Indonesia in December 2021, the United States has now allocated resources for a 30% increase in counseling centers education in Indonesia, which will provide new opportunities for Indonesian students to study in the United States. States. Additionally, Peace Corps volunteers and Fulbright scholars and teachers will return to Indonesia in January 2023, after a multi-year hiatus caused by the COVID-19 pandemic.

Management of Innovative Medical Technologies: The U.S. Trade and Development Agency and GE Healthcare announced plans to co-fund a pilot project to help the Indonesian Ministry of Health (MoH) develop a National Image and Data Repository (NIDR), creating a new cloud-based centralized warehouse for e-medicine. records and a hub-and-spoke network linking general practitioners in primary care facilities to cardiologists in a central hospital.

Support sustainable development in the new Indonesian capital: USAID partners with the Ibu Kota Nusantara Authority – founded by President Widodo to oversee the relocation of the Indonesian capital – to provide project management support and technical assistance for the development of the new capital , emphasizing the principles of the smart city and the “forest city”.

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