Antara News·Indonesia·Wednesday, October 7, 2026 at 10:31 AM UTC

Indonesia eyes stronger US trade ties through reciprocal trade deal

Translate

Maria Cicilia Galuh Prayudhia, Yashinta Difa

..Indonesia's young and productive population and abundant natural resources make it an attractive partner for foreign capital,

Jakarta (ANTARA) - Indonesia is seeking to expand its economic ties with the United States through a proposed Agreement on Reciprocal Trade (ART), aiming to boost bilateral trade, strengthen supply chains, and attract value-added investment amid shifts in global markets.

"The global economy is currently facing various dynamics, yet Indonesia remains open to trade and partnerships while continuing domestic reforms to strengthen industries and expand opportunities for cooperation," Trade Minister Budi Santoso said in a statement on Wednesday.

According to the minister, the ART framework is designed to provide greater market certainty, improve trade access, and integrate Indonesian industries into global supply chains.

Budi emphasized that Indonesia's young and productive population and abundant natural resources make it an attractive partner for foreign capital, particularly as the government prioritizes industrial downstreaming, food security, and sustainable production.

"The rising role of the Indo-Pacific in the global economy has placed Indonesia in a strategic position as a key market and a strategic hub for production, investment, and exports," he noted.

Echoing these views at the 14th US-Indonesia Investment Summit in Jakarta on Tuesday (October 6), Coordinating Minister for Economic Affairs Airlangga Hartarto stated that implementing the ART is central to expanding market access and reducing trade barriers.

"We look forward to continuing our cooperation with the US business community to turn these strategic opportunities into concrete investments and stronger partnerships that will contribute to mutual economic growth," Airlangga said.

Airlangga emphasized the importance of value-added investment through stronger economic partnerships with the US to foster sustainable growth amid ongoing global economic uncertainty while reinforcing national economic resilience.

Trade relations between the two nations have shown steady growth, with Indonesian exports to the US rising from US$25.83 billion in 2021 to US$31.01 billion in 2025.

In the first half of 2026, Indonesian exports to the US reached US$15.85 billion, generating a trade surplus of US$8.56 billion.

The US remains one of Indonesia's top five sources of foreign investment, with realized investment reaching US$1.72 billion in the first six months of 2026.

View the original on Antara News →

KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.