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Jokowi to pursue $19.5 billion of business deals with US firms

President Joko “Jokowi” Widodo departed on Saturday to the US on his first visit to the superpower, where he is scheduled to hold a meeting with President Barack Obama and tech leaders of Silicon Valley

Hans Nicholas Jong (The Jakarta Post)
Jakarta
Sun, October 25, 2015

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Jokowi to pursue $19.5 billion of business deals with US firms

P

resident Joko '€œJokowi'€ Widodo departed on Saturday to the US on his first visit to the superpower, where he is scheduled to hold a meeting with President Barack Obama and tech leaders of Silicon Valley.

Speaking before taking his flight aboard the presidential aircraft at Halim Perdanakusuma Air Base in East Jakarta, Jokowi gave details about some of his objectives during the four-day visit.

'€œThe main objective of this visit is to boost bilateral cooperation between Indonesia and the US, particularly in investment and trade. I will also pursue [cooperation in] digital and creative economy industries. And also develop democracy and tolerance,'€ Jokowi said in a press briefing

Jokowi is scheduled to meet Obama as well as the chamber of commerce on Monday. On Tuesday, Jokowi is expected to meet with the US foreign commerce committee and fund managers at the Willard InterContinental Hotel in Washington, DC. On the same day, he will also deliver a speech at US think tank Brookings Institution.

On the second leg of the visit in San Francisco, Jokowi will meet with leaders from Microsoft, Apple, Google and Facebook.

'€œIn San Francisco, our main objective is to develop a technological axis and see directly the successes of the US in developing its digital and creative economy,'€ Jokowi said. '€œAnd we hope the benefit of this digital and creative economy can be felt by all Indonesians, including those living in rural areas.'€

During the visit, business deals worth US$19.5 billion, including joint projects between Indonesian state utilities and US firms in the power sector, are set to be announced, according to Indonesian officials who spoke on the condition of anonymity.

Obama, who lived in Indonesia as a child, visited the country twice during his first term, as he sought to put more emphasis on thus ties with Asia.

But like many countries in the region, Indonesia remains careful about balancing its relations with the US and China, the world'€™s economic powerhouse. Indonesia doesn'€™t count itself among the nations contesting for islands in the disputed South China Sea, although it is concerned that China'€™s expansive maritime claims extend into the waters of Indonesia'€™s Natuna Islands, where Indonesian officials say they want more US investment.

The Jokowi administration, driven by its decision to project Indonesia as a military power, especially a naval power, has sought to strengthen defense and security ties with the US.

The presidential visit is the culmination of a series of visits by the top brass of Indonesia'€™s defense establishment over the last 12 months.

Indonesia'€™s then naval chief of staff, Adm. Marsetio, visited the US in October 2014. Gen. Moeldoko, the then chief of the Indonesian Military visited the US in December 2014. Furthermore, Defense Minister Ryacudu Ryamizard, visited the US in May 2015.

In this context, the presidential visit may secure substantive bilateral defense and security cooperation in the areas of defense procurement and the development of domestic defense industries.

'€œI hope my visit to the US will contribute to peace and welfare for all,'€ Jokowi said, without elaborating on the details of the security discussions that he will have with Obama.

Jonah Blank, an expert on Asia at RAND Corp., said one area where Jokowi had a chance to make his mark with Obama was on climate change. His visit comes ahead of a global climate change summit to take place in Paris in December where the US will be pushing nations to set binding targets for reducing emissions.

Indonesia is a major source of greenhouse gas emissions. Researchers estimate that since September, emissions from Indonesia'€™s rampant land and forest fires exceeded the average daily emissions from all US economic activities, as many of the fires are on peat lands that are extremely rich in carbon.
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