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

The United States and Indonesia share a deep and enduring Strategic Partnership, founded on the shared foundations of democracy and pluralism, and our common commitment to a 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 food and affordable energy , strengthening pandemic preparedness and global health planning, expanding our critical human relationships, and solving problems. problems in Burma and Afghanistan. In Fiscal Year 2022 alone, the US State Department and the US Agency for International Development plan to provide Indonesia with 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, where the leaders will review efforts to accelerate US-Indonesia cooperation across many shared challenges and opportunities, including and Indo. -The Pacific Economic Foundation (IPEF) and the Global Alliance for Infrastructure and Investment (PGII). During the G20 Summit, the United States and Indonesia will join partners to announce a new PGII transformation initiative that will accelerate Indonesia’s clean energy transition and promote long-term success. And today, President Biden is announcing the following new initiatives:

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

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Enduring Fish and Marine Biodiversity: In partnership with Indonesia’s Ministry of Marine Affairs and Fisheries, USAID is launching two new programs that will protect Indonesia’s marine biodiversity and critical mangrove ecosystems by strengthening sustainable management and equalization of fishing grounds and Marine Protected Areas, and building the stability of commercial supply chains. fishing communities from the effects of climate change.

Carbon Capture: ExxonMobil and Indonesian state company Pertamina have signed a $2.5 billion agreement to further explore the development of a Carbon Capture and Sequestration Hub in Indonesia. This partnership will help key industrial sectors to decarbonize, including refining, chemicals, cement and steel sectors, thereby reducing carbon emissions while creating economic opportunities for workers. of Indonesia, and this agreement will help Indonesia achieve its real ambitions by 2060 or sooner. .

Coast Guard Capacity Building: Building on the longstanding partnership between the United States and the Indonesian Maritime Security Agency (BAKAMLA), the United States will now support the BAKAMLA maritime surveillance aircraft program. US support will enable BAKAMLA to purchase aircraft, pilot training, and maintenance that will greatly enhance BAKAMLA’s capabilities related to maritime surveillance, maritime law enforcement, and combating illegal fishing. .

Investing in Food Security and Critical Supply Chains: The US International Development Finance Corporation will invest $20 million in Indonesia’s Aruna Global Technologies to connect Indonesia’s rural fishermen to the global market with new technologies that empower women and disadvantaged communities, to lower food costs, and increase efficiency in food supply chains. in the world’s second largest fishing industry.

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Reducing Plastic Pollution: USAID will launch a new initiative to support public-private partnerships to reduce land-based sources of marine 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 value chain for recycling.

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

Investing in Cutting-Edge 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,” which combines renewable energy with battery-backed storage and green hydrogen to provide sustainable and renewable energy. reliable on the power grid.

Protecting Biodiversity: USAID plans to launch a new partnership with Indonesia’s Ministry of Environment and Forestry 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; facilitating cooperation between local governments, NGOs, and the community; and reduce human-wildlife conflicts.

Harbor Support and Pacific Fisheries: The United States and Indonesia have pledged to work together to improve port and fisheries management in the Pacific. By strengthening Indonesia’s expertise in port and fisheries management and administration, and in partnership with Pacific partners, the United States and Indonesia will deploy technical experts to the region to support critical port needs. – Pacific ships and fishing.

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

Medical Technology: The US Trade and Development Agency and GE Healthcare have announced plans to fund a pilot project to support the Indonesian Ministry of Health (MoH) to create a national image and data repository (NIDR), to create a new database that cloud-based for electronic medicine. records and an online network that connects general practitioners in primary care centers with cardiologists in a central hospital.

Supporting Sustainable Development in Indonesia’s New Capital: USAID is partnering with the Ibu Kota Nusantara Authority – established by President Widodo to oversee the relocation of Indonesia’s capital – to provide project management support and technical assistance in the development of the new capital, to focused on smart city and “Forest City” principles.

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