Indonesia, US Chambers Sign Fresh Trade Pact to Deepen Bilateral Economic Ties
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JAKARTA, Investortrust.id — Indonesia’s national business chamber has sealed a new pact with its US counterpart to strengthen trade and investment ties, as both nations seek to unlock greater economic potential across key sectors. The agreement marks a fresh milestone in bilateral relations amid renewed momentum to eliminate trade barriers and expand labor-intensive exports.
The Indonesian Chamber of Commerce and Industry, known as Kadin, and the US Chamber of Commerce signed a two-year memorandum of understanding (MoU) at the US Chamber’s headquarters in Washington, DC, on Friday, May 2, 2025.
Kadin Chairman Anindya Novyan Bakrie, accompanied by senior Kadin officials including Erwin Aksa, Bernardino M. Vega, and Tony Wenas, joined the signing ceremony. The event was also attended by John Murphy, Senior Vice President and Head of International at the US Chamber, and John Goyer, Executive Director for Southeast Asia.
The deal comes shortly after the release of the National Trade Estimate Report 2025, a key policy document assessing global trade barriers. The agreement signals Indonesia’s commitment to reducing non-tariff obstacles and fostering joint growth in the Indo-Pacific region.
“This is great news for Indonesia’s economy, its business community, and our workers,” Anindya said. “We also thank the US Chamber and CIPE [Center for International Private Enterprise] for their continued support in building Kadin’s institutional capacity, including our path to joining the OECD.”
Anindya emphasized the MoU’s potential to stimulate Indonesia’s labor-intensive export sectors such as footwear, electronics, and garments, which together employ over 2.1 million people.
“We hope this number will continue to grow,” he added.
Anindya also noted that the partnership could facilitate broader access to Indonesia’s market for American businesses. He highlighted the possibility of expanding imports of US commodities such as soybeans for tempeh, cotton for textiles, dairy, and wheat—all crucial for Indonesia’s labor-intensive and agricultural sectors.
“If trade becomes more balanced, we can be a valuable partner to the US,” Anindya said.
On investment, he pointed out that Indonesia currently attracts around $100 billion in foreign direct investment annually, and stronger confidence among US businesses could increase that figure.
“This is a good day, and hopefully it brings real benefits to the Indonesian people,” he said. “I just signed the MoU with the Vice President of the US Chamber of Commerce—let’s hope the impact is tangible.”
Anindya added that the Indonesian government had taken active steps to improve its trade climate, including President Prabowo Subianto’s instruction to eliminate non-tariff barriers such as local content requirements, import quotas, and red tape.
“Our hope is that reciprocal tariffs can be reviewed, lowered, and, if possible, eliminated,” he said.
John Murphy of the US Chamber echoed the importance of closer cooperation between the two countries, underlining that Indonesia remains a high priority for the Chamber’s members.
“We value our long-standing partnership with Kadin Indonesia, but the US-Indonesia economic relationship has yet to reach its full potential,” Murphy said.
He noted that since 2002, US companies have invested over $6 billion in Indonesia, with relations elevated to a Comprehensive Strategic Partnership in 2023.
“By jointly addressing non-tariff barriers and other challenges, we can unlock a significant rise in trade and investment volumes over the next few years,” he added.