JAKARTA: When Standard Oil opened its Jakarta office in 1898, few could have imagined how deeply US business roots in Indonesia would grow.
More than a century later, those early commercial ties have evolved into a broad partnership that is supporting Indonesia’s transformation and its long-term vision for Golden Indonesia 2045.
Today, the United States remains one of Indonesia’s most enduring economic partners.
American companies continue to invest not only capital, but also expertise, innovation and opportunities for Indonesian talent.
This commitment aligns with Indonesia’s approaching centennial of independence and its goals for inclusive and sustainable growth.
US companies are also supporting the Prabowo administration’s targets for economic expansion, including the goal to raise growth to 8% by 2029.
Priority sectors such as food security, energy transition, education, and industrialisation are central to this effort, and US businesses play an essential role across each of them.
According to Indonesia’s Investment and Downstream Industry Ministry (BKPM), US companies have invested more than US$14.85bil since 2020.
This makes the US the country’s largest Western investor and the sixth largest overall. Over the past decade, total US contributions have exceeded US$128bil.
Investment has increased steadily, rising from US$749mil in 2020 to US$3.69bil in 2024. As of the second quarter of 2025, US investment stood at US$1.55bil and continues to trend upwards.
These funds reach many parts of Indonesia, led by Papua and Central Papua (40%), East Java (38%) and West Java (13%).
Beyond the figures, the impact is most visible in the people and communities who benefit from new skills, better opportunities, and stronger local industries.
In October, the US-Asean Business Council (USABC) launched the US Business for Indonesia (Bisa) report.
The publication highlighted how US companies contribute to Indonesia’s economic transformation through practical, measurable efforts.
“This report paints a picture of how US businesses are contributing to each of President Prabowo’s ambitious economic priority areas, through their direct investments, workforce development, and technology transfer,” Ambassador Brian McFeeters, interim president and chief executive officer of USABC, said during the launch of the Bisa report.
Founded in 1984, the USABC has been the premier advocacy organisation for US business corporations operating within Asean.
It promotes trade, investment, and partnerships that benefit both the United States and the broader Indo-Pacific region.
The Bisa report reflected this mission by profiling more than 35 companies and their contributions to digital transformation, Science, Technology, Engineering, Mathematics (STEM) education, sustainable agriculture, and other key areas.
One of the significant outcomes of US business engagement is job creation.
Since 2014, partnerships with US companies have created more than one million employment opportunities.
Many of these were made possible through the development of micro, small and medium enterprises (MSMEs), vocational training, entrepreneurship support, and digital skills programmes.
These activities have produced over US$16bil in revenue. More than five million Indonesians have received digital skills training that strengthens their knowledge in cloud computing, cybersecurity, and artificial intelligence.
Another 60,000 students and educators have benefitted from STEM-related initiatives. Approximately 300,000 individuals have gained improved nutrition and health outcomes through various community programmes.
Several companies are also playing a central role in preparing Indonesia’s workforce for the digital age. Amazon Web Services has trained more than 1,000 university students through its digital upskilling and job-readiness programmes.
Oracle has equipped over 2,000 vocational students with hands-on training and industry-recognised certifications.
Meanwhile, Netflix has supported more than 600 aspiring media professionals through workshops on film production and creative finance.
Together, these initiatives reflect a broader commitment by US businesses to strengthen Indonesia’s human capital and future workforce.
US investment is gradually shifting from traditional sectors toward areas with high innovation potential, including services, chemicals and pharmaceuticals, and food and beverage.
This aligns well with Indonesia’s goal of diversifying its economy and improving global competitiveness.
The shift also supports the administration’s strategic priorities: advancing science and innovation, implementing a green economy, accelerating digital transformation, strengthening international economic integration, and developing cities as hubs of economic activity.
The Bisa report emphasised one central message. Indonesia and the United States share a long-term interest in developing a resilient, future-ready economy.
The report encouraged deeper cooperation between Indonesian institutions and US companies, particularly in the areas that support skills development and technology adoption.
“Through upskilling and technology transfer, US companies can boost the efficiency and competitiveness of local industries.
“More importantly, by working closely with local partners, they can make a real difference in the daily lives of Indonesians,” McFeeters said.
As Indonesia approaches its centennial, collaboration between US enterprise and Indonesian ingenuity will remain a vital foundation for shared progress and prosperity. — The Jakarta Post/ANN
