FACT SHEET: Increasing the Strategic Partnership between the United States and Indonesia

Given our shared commitment to the rules-based international order and our shared ideals of democracy and pluralism, the United States and Indonesia have a strong and enduring strategic partnership. The United States is still committed to promoting Indonesia's security and prosperity while collaborating with other countries to address the climate crisis, expand our vital people-to-people ties, strengthen pandemic preparedness and the global health architecture, and address the crises in Afghanistan and Burma. The U.S. Department of State and U.S. Agency for International Development want to give Indonesia bilateral development and security assistance totaling more than $150 million in Fiscal Year 2022 alone.

President Biden and President Widodo will have a bilateral meeting on the sidelines of the G20 Summit in Bali, Indonesia, where they will discuss efforts to advance U.S.-Indonesian cooperation across a variety of shared challenges and opportunities, including through the Indo-Pacific Economic Framework (IPEF) and the Partnership for Global Infrastructure and Investment (PGII).

The G20 Summit will see the United States, Indonesia, and other partners announce game-changing new PGII initiatives that will hasten Indonesia's transition to sustainable energy and advance long-term development. Additionally, President Biden is introducing the new initiatives listed below today:

  • A $698 million MCC Compact, funded by $649 million from the United States and $49 million from Indonesia, has been successfully launched as a result of successful talks between the two countries. The Compact aims to mobilize international capital in support of Indonesia's development goals, in part by strengthening the country's financial markets, and to increase access to financing for women-owned businesses and micro, small, and medium-sized enterprises. It also supports the development of high-quality, climate-conscious transportation infrastructure in five provinces.
  • Sustainable Fishing and Marine Biodiversity: USAID is launching two new programs in collaboration with Indonesia's Ministry of Marine and Fisheries Affairs to safeguard Indonesia's marine biodiversity and vital mangrove ecosystems. These programs will improve the sustainable and equitable management of fisheries and Marine Protected Areas and increase the adaptability of commercial supply chains and communities that depend on fishing to the effects of climate change.
  • ExxonMobil and Pertamina, the state-owned energy firm of Indonesia, have inked a $2.5 billion agreement to further evaluate the growth of the country's regional Carbon Capture and Sequestration Hub. This agreement will assist Indonesia realize its net-zero aspirations in 2060 or earlier by enabling important industrial sectors to decarbonize, such as the steel, cement, chemicals, and refining ones. This will reduce carbon emissions while improving economic prospects for Indonesian workers.
  • Building the capacity of the Coast Guard: As part of their ongoing partnership, the United States and the Indonesian Maritime Security Agency (BAKAMLA) will now fund BAKAMLA's program for using drones for maritime surveillance. With U.S. assistance, BAKAMLA will be able to purchase drones, train pilots, and maintain them, all of which will greatly improve BAKAMLA's capabilities in relation to maritime domain awareness, maritime law enforcement, and thwarting illegal fishing.
  • The U.S. International Development Finance Corporation will invest $20 million in Indonesia's Aruna Global Technologies to connect Indonesia's small-scale rural fishers to the global market through cutting-edge technology platforms that empower women and underserved communities, lower food costs, and boost resilience in food supply chains in the second-largest fishing industry in the world.
  • Reducing Plastic Pollution: In accordance with the principles of the circular economy, USAID will start a new project to assist public-private cooperation to minimize land-based sources of ocean plastic pollution. In order to improve waste collection and treatment and develop the value chain for recycling, USAID will collaborate with local governments, the commercial sector, and community organizations to promote integrated waste management.
  • Greening Public Transit: To assist the capital's public rail system's transition to renewable energy sources, the U.S. Trade and Development Agency is announcing a new cooperation with MRT Jakarta.
  • Investing in Cutting-Edge Energy Technology: The United States International Development Finance Corporation will support HDF Energy's investment in a portfolio of green hydrogen projects in Indonesia dubbed "Renewstable," which combines renewable energy with battery and green hydrogen backed storage to deliver steady and dependable power to electrical grids.
  • Conserving Biodiversity: In support of the nation's Forestry and Other Land Use (FOLU) Net Sink 2030 on the conservation of orangutans and other species like elephants, tigers, and rhinoceroses in Sumatra and Kalimantan, USAID intends to begin a new climate partnership with Indonesia's Ministry of Environment and Forestry. This collaboration will strengthen cooperation amongst pertinent stakeholders and support ongoing conservation initiatives.
  • Supporting Ports and Fisheries in the Pacific: The US and Indonesia made a commitment to working together to improve port and fisheries management in the region. The United States and Indonesia will send technical specialists to the area to serve vital Pacific port and fishing needs by utilizing Indonesian expertise in port and fisheries administration and logistics and working together with Pacific partners.
  • Cooperation in Education: Building on the bilateral MOU for Educational Cooperation that the US and Indonesia signed in December 2021, the US has now allotted funds for a 30% increase in educational advising centers in Indonesia, which will open up new opportunities for Indonesian students to study in the US. In addition, after a lengthy absence brought on by the COVID-19 pandemic, Peace Corps volunteers, Fulbright scholars, and teachers will return to Indonesia in January 2023.
  • Piloting Innovative Medical Technologies: The U.S. Trade and Development Agency and GE Healthcare announced plans to co-fund a pilot project to assist the Indonesian Ministry of Health (MoH) in developing a national image and data repository (NIDR), creating a new cloud-based centralized warehouse for electronic medical records and a hub-and-spoke network connecting general practitioners in primary care facilities with cardiologists in a central hospital.
  • Supporting Sustainable Construction in Indonesia's New Capital: In collaboration with the Ibu Kota Nusantara Authority, which President Widodo established to oversee the relocation of the Indonesian capital, USAID is offering project management support and technical assistance on the development of the new capital with a focus on smart city and "Forest City" principles.

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