Pence Brings Home $10 Billion of Indonesia-US Business Deals
The visit of American Vice President Mike Pence to Indonesia was fruitful in terms of investment. A total of 11 commercial and investment deals were signed between Indonesian and US companies that is estimated to have a combined value of USD $10 billion. On Thursday morning (20/04) Pence met Indonesian President Joko Widodo to discuss overcoming obstacles that limit bilateral trade and investment between both nations. One day later Pence departed to Australia.
Indonesia is the third destination of Pence's 10-day tour through the Asia-Pacific. This tour aims to enhance diplomatic relations, improve regional security cooperation, and seek fairer trade between the USA and several Asia-Pacific nations.
The investment deals include ExxonMobil Mobil Corp that will supply 1 million tons of liquid natural gas (LNG) to Indonesia's state-owned energy company Pertamina in the 2025-2045 period. Other examples are Lockheed Martin that will provide an advanced weapons targeting system for Indonesia’s F-16 fighter jets, General Electric Co that will build electrical infrastructure, and Honeywell that will supply turboprop engines to Indonesian aerospace firm Dirgantara.
Read more: Diplomatic & Trade Relations Indonesia: US VP Pence Met Jokowi
During a meeting with Indonesian Vice President Jusuf Kalla, Pence said "These investment deals represent the tremendous excitement that US firms feel about opportunities in Indonesia. However, he added US companies have to face various barriers when trying to enter the Indonesian market such as the weakness of intellectual property, the lack of transparency and the requirements in manufacturing to have a minimum amount of local content (in order to be allowed to sell products domestically in Indonesia).
Based on the data from Indonesia's Investment Coordinating Board (BKPM), the USA invested a total of USD $1.16 billion in 540 projects in Indonesia in full-year 2016.
MOUs signed by Indonesia-US Companies during Pence Visit:
|Exxon Mobil-Pertamina||ExxonMobil Mobil Corp is to supply 1 million tons of LNG to energy company Pertamina in the 2025-2045 period|
|General Electric||GE agrees to support Indonesia's 35,000 MW power program by delivering supporting technology for a 2,650 MW program|
|Greenbelt Resources-Jababeka Infrastructure||Both companies are to build a waste treatment center in the Jababeka region|
|Haliburton-Perusahaan Listrik Negara (PLN)||(1) Cooperation in a geothermal project in Ambon,
(2) Build a strategic and long-term cooperation for the Geothermal Energy Development project
|Honeywell-Dirgantara Indonesia||Honeywell is to supply 34 turboprop engines to Indonesian aerospace firm Dirgantara Indonesia (as well as training) over the next 4 years|
|Lockheed Martin-Indonesian army||Will provide an advanced weapons targeting system for Indonesia’s F-16 fighter jets|
|Pacific Intra Capital LLC-Infra Cerdas Indonesia-PLN||Develop advanced electricity metering infrastructure|
|Investasi Ormat Technologies||To develop a 110 MW energy project in Sarulla (North Sumatra)|
|Applied Materials-PLN||To develop a 500 KW infrastructure project|
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