Indonesia Plans To Invest In The United States To Negotiate Tariffs Under The Trump Administration, Focusing On Specific Sectors As Potential Options

CNBC Indonesia/Arrijal Rachman

Indonesia Plans To Invest In The United States To Negotiate Tariffs Under The Trump Administration, Focusing On Specific Sectors As Potential Options

Thursday, 17 Apr 2025

The Indonesian government is planning to invest in the United States (US) as part of its negotiations regarding the reciprocal tariffs imposed by President Donald Trump, which stand at 32%.

Deputy Minister of Investment and Downstream Industry, Todotua Pasaribu, has not yet confirmed which specific industries will receive investment from Indonesia to the US. However, he indicated that one of the most strategic commodities is oil and gas.

"Oil and gas is indeed one of the strategic sectors. If we consider establishing a company or examine the business lineup, several of our investments abroad have already taken place. One of these is in the oil and gas industry through Pertamina's subsidiary," Todotua stated to the media on Monday, April 14. Nevertheless, he mentioned that it is still uncertain whether Pertamina's subsidiary will be the one investing in the US oil and gas sector.

Additionally, the information technology (IT) industry in the US is also seen as a viable area for investment from Indonesia. He noted that if Indonesia invests in IT in the US, it could also enhance its research and development (R&D) capabilities in the future.

Todotua further emphasized that investing in IT in the US would yield attractive returns, as Indonesia could learn advanced technologies from the US. He also revealed that the upcoming investments will follow a state-owned enterprise (SOE) strategy, suggesting that BPI Danantara may play a role in this investment initiative.

"This means that with Danantara's involvement, we can be strategic in our investments both domestically and internationally. It allows for greater flexibility compared to before Danantara. Looking at the portfolio, several of our SOEs have indeed invested abroad," he explained.