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Govt invites US investment while 'not taking sides'
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US President Joe Biden (left) talks with President Joko “Jokowi” Widodo as he arrives for the G20 leaders' summit in Nusa Dua, Bali, on Nov. 15, 2022. (AFP/Kevin Lamarque)
T
he Indonesian government remains committed to its long-standing free and independent foreign policy doctrine while pursuing opportunities for cooperation with United States firms on critical minerals and electric vehicles.
Amid the intensifying rivalry between the US and China, Deputy Investment Minister Nurul Ichwan sees the strength of Indonesia’s strategy in accepting cooperation from all parties rather than picking sides.
"We can see that both countries are looking for new friends. Indonesia could be friends with the United States, we also have no problem with China,” Nurul said on Wednesday in a forum held by the Institute for the Development of Economics and Finance (INDEF).
In a global economy marked by renewed great power competition, the US and China are each clearing their critical industry supply chains from interference of the other amid concerns over national security.
The US has been using a strategy it calls “friendshoring”, a term coined by Treasury Secretary Janet Yellen, where factories are moved from states considered risky to allies of the US government.
“We have no specific interest in being on the American side or more on China's,” Nurul told participants during the livestreamed event, adding that Indonesia had the “fundamental fuel” to support the economies of both countries thanks to its strong natural resources, relatively stable politics and huge domestic market.
Such fundamentals were expected to draw American investment in semiconductors, 5G infrastructure, energy transition equipment, active pharmaceutical ingredients (API) and strategic minerals, including those needed for electric vehicles (EV), he said.
