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ndonesia must utilize the recent massive exposure it received from internationally renowned US media during US President Barack Obama’s two-day “homecoming” visit, to promote partnerships with US businesspeople, an analyst says.

Danareksa Research Institute chief researcher Purbaya Yudhi Sadewa told The Jakarta Post on Thursday that among the most significant effects of Obama’s visit to Indonesia was massive media coverage that meant free promotion for the country.

“US media exposure will promote Indonesia to professionals there. They will learn that the two countries have much in common, so businesspeople there will be interested in cooperating with us,”
he said.

He added that Obama’s positive statements on Indonesia’s robust economic performance, strong democracy and dynamic civil society would strongly reverberate in his country, which might improve Indonesia’s image among US businesspeople.

“Now, the situation depends on our efforts to materialize commitments made during his visit,” he emphasized.

Indonesia and the US have launched a comprehensive partnership framework covering broad fields from economic and cultural to security issues.

During his visit, Obama expressed his intention to make his country Indonesia’s number one trading partner in the world.

Purbaya said that the US was very important for Indonesia since the country’s exports to the US represented between 9 and 10 percent from its total exports value, while US exports to Indonesia only represented between 0.6 percent and 0.7 percent.

In a bid to tighten the two countries’ economic ties, Jakarta and Washington have agreed to boost their trade volume from US$21 billion in 2008 to $35 billion over the several years ahead.

The partnership also aims to invite more US investments in sectors such as oil, gas, renewable energy and agriculture.

According to the Coordinating Investment Board (BKPM), several US giant companies such as General Electric and Caterpillar have registered their commitment to set up businesses in Indonesia in the near future.

Coordinating Economic Minister Hatta Rajasa indicated a serious commitment from the US to improve its economic bond with Indonesia.

However, he admitted that President Obama’s visit did not aim to sign any business agreement.

“President Obama’s visit was not in the context to sign an agreement. He came here to strengthen the commitment between the two countries to boost cooperation in various fields,” he told reporters at his office in Jakarta on Wednesday.

Hatta said that to boost trade and investments between the two countries, both should work harder, but he added that the current trends had shown positive improvements.

In order to attract more investors from the US, Purbaya said the government needed to solve several vital issues such as poor infrastructure and unclear regulations that might have contributed to potential investors backing down from their investment plans.

“Many investors across the globe have expressed their intention to invest in Indonesia. But, once they learn about the messy investment climate here, they cancel,” he said.

The government should therefore develop a serious program if it wants overseas investors to do business in the country, Purbaya said. (lnd)