Indonesia targets $33 billion boost from upcoming US trade agreements

In a meeting with the US-ASEAN Business Council, Indonesian trade minister Hartarto announced that forthcoming trade agreements with the United States are projected to generate about $33 billion, which the government hopes will spur job creation and strengthen supply chains. He highlighted that bilateral trade climbed to $32.34 billion between January and August 2026, an 11.82% year-on-year increase, making the United States Indonesia’s second-largest export market.

US foreign direct investment reached $3.4 billion in the first three quarters of 2026, positioning the United States as the fourth-largest investor in Indonesia. Jakarta’s roadmap aims for 8% annual economic growth by 2029, focusing on export-oriented industrialisation, digital transformation and green economies, and is courting US funds for advanced manufacturing, digital infrastructure, AI and renewables. Hartarto emphasized opportunities in the semiconductor sector, forecasting the domestic chip market to expand from $5.08 billion in 2025 to $7.07 billion by 2030, inviting US firms to partner in technology transfer. He also pledged to address regulatory hurdles raised by American companies through inter-ministerial coordination.