Jakarta, May 3, 2025 – The Europe Today: The Indonesian Chamber of Commerce and Industry (Kadin) has taken a significant step to enhance bilateral economic relations with the United States by signing a Memorandum of Understanding (MoU) with the US Chamber of Commerce. The agreement, which aims to bolster trade and investment between the two nations, was signed on Friday at the US Chamber of Commerce headquarters in Washington, D.C.
Kadin Chairman Anindya Novyan Bakrie described the agreement as a positive development for Indonesia’s business sector and workforce. He expressed confidence that the MoU would serve as a breath of fresh air, opening up new opportunities for Indonesian entrepreneurs and workers.
“This is good news for the Indonesian economy, Indonesian entrepreneurs, and workers in Indonesia. We also thank the US Chamber of Commerce and CIPE (Center for International Private Enterprise) for their support in strengthening Kadin’s capacity, including in our efforts to join the OECD,” Bakrie said in a statement on Saturday.
The MoU, which is valid for two years, represents a concrete step towards reducing trade barriers—particularly non-tariff barriers—and advancing economic growth in the Indo-Pacific region. Bakrie noted that this cooperation would provide a boost to labor-intensive industries in Indonesia, which already employ millions of workers.
Indonesia is a major exporter of goods such as footwear, rubber, electronics, and garments, with these three industries alone employing around 2.1 million workers. Bakrie hopes that this number will grow, driven by enhanced trade relations with the US.
The agreement also aims to open up new opportunities for US businesses to access the Indonesian market. “If we can realize a more balanced trade relationship, we can become a partner to them in exporting soybeans for tempeh, cotton for the garment industry, dairy products, and wheat. This is related to labor-intensive industries and the agricultural sector in Indonesia,” Bakrie explained.
John Murphy, Senior Vice President and Head of International at the US Chamber of Commerce, also highlighted the significance of this partnership, stressing the importance of closer collaboration to unlock the economic potential between the two nations. Murphy noted that while the economic relations between the US and Indonesia are strong, there remains room for improvement.
“Since 2002, the US has invested over US$6 billion to support Indonesia’s economic growth. The bilateral relationship was elevated to a Comprehensive Strategic Partnership in 2023. However, there is still untapped potential, and we believe this MoU will play a crucial role in fostering more robust and mutually beneficial ties,” Murphy said.
This MoU marks a milestone in the strengthening of economic ties between the US and Indonesia, paving the way for enhanced trade, investment, and collaboration in key sectors for years to come.
