The first item on the agenda when U.S. President Barack Obama and Indonesian President Susilo Bambang Yudhyono met in Jakarta in November of last year was improving business ties. Boosting our commercial relations—between the world’s second- and third- largest democracies—in order to create jobs and prosperity in both our nations is a top priority for me and my entire Embassy team.
Indonesia has tremendous potential: 240 million consumers, six percent growth, and a stable political environment. But it is not an easy place to do business. Economic nationalism, corruption, and a lagging infrastructure challenge all but the most tenacious foreign investors. In order to increase our business links, we advocate for U.S. companies—both in terms of specific projects and broader policies; promote ties between U.S. and Indonesian businesses; and foster the development of the next generation of Indonesian entrepreneurs. This approach is making a tangible difference: U.S. exports to Indonesia increased by 36 percent in 2010.
Other rapidly growing countries in the region, including India, China, and South Korea, are competing for a stake in Indonesia’s growth; the United States must be an effective advocate for U.S. companies in order to remain competitive. We have taken an approach that I call “going retail.” We actively engage government and business interests from the working level to executives to create opportunities for U.S. exports.
For example, we collaborated with Indonesian lawmakers and air carriers to introduce legislation that allowed for Export-Import Bank financing for billions of dollars worth of Boeing exports. We worked with government officials to change regulations that threatened almost $13 billion in oil and gas exploration per year. And, we helped a major U.S. company secure a huge contract in the resources sector. There are other successes. Wisconsin-based OshKosh sold fire and rescue vehicles to Indonesia’s expanding airport network. Record agricultural exports feed a growing Indonesian population. We’re helping U.S companies in other areas as well, from Hollywood films to “made-in-America” locomotives, from cutting edge pharmaceuticals to American franchises.
We complement our advocacy for U.S. companies by promoting expanded ties between U.S. and Indonesian businesses. We are increasing business-to-business relationships to promote opportunities for U.S. companies. Trade missions from the United States to Indonesia, such as a Clean Energy trade mission led by Commerce Secretary Gary Locke in 2010 and recent visits by Acting Undersecretary of Agriculture Michael Scuse and Undersecretary of Commerce Francisco Sanchez, have brought U.S. and Indonesian firms together. We have also supported 20 recent Indonesian reverse trade missions to the United States—including missions focused on broadcasting equipment, the oil and gas industry, electric power, and restaurant equipment. In response to the new Overseas Private Investment Corporation (OPIC) agreement, OPIC will host its first-ever regional investment conference in Southeast Asia in May 2011.
We are also increasing our business-to-business ties by promoting Indonesia’s next generation of entrepreneurs. On a per capita basis, Indonesia has less than one percent the number of entrepreneurs as the United States. Promoting entrepreneurship and entrepreneurs who demonstrate innovation and flexibility in a dynamic global marketplace will not only increase bilateral trade but also create allies in seeking economic reforms in Indonesia. Indonesian entrepreneurs will be natural champions to improve the ease of doing business; Indonesia ranks 121st worldwide according to a recent World Bank study of global economies. Indonesia will benefit directly from promoting entrepreneurship and this will also open more opportunities for trade with the United States.
As President Obama told the Indonesian people when he visited last November, “America has a stake in Indonesia growing and developing, with prosperity that is broadly shared among the Indonesian people—because a rising middle class here in Indonesia means new markets for our goods, just as America is a market for goods coming from Indonesia.” By using the full resources of all of the agencies of the U.S. Government, offering effective advocacy, building partnerships, and promoting entrepreneurship, we are doing our part to support the President’s National Export Initiative’s goal of doubling exports in five years that will support two million jobs in the United States.
Scot Marciel is U.S. Ambassador to Indonesia. Previously, Marciel served as Deputy Assistant Secretary for the East Asia and Pacific Bureau, which is responsible for relations with Southeast Asia, and concurrently as Ambassador for ASEAN Affairs.
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Trade Diplomacy: U.S. and Indonesia
June 4, 2011
The first item on the agenda when U.S. President Barack Obama and Indonesian President Susilo Bambang Yudhyono met in Jakarta in November of last year was improving business ties. Boosting our commercial relations—between the world’s second- and third- largest democracies—in order to create jobs and prosperity in both our nations is a top priority for me and my entire Embassy team.
Indonesia has tremendous potential: 240 million consumers, six percent growth, and a stable political environment. But it is not an easy place to do business. Economic nationalism, corruption, and a lagging infrastructure challenge all but the most tenacious foreign investors. In order to increase our business links, we advocate for U.S. companies—both in terms of specific projects and broader policies; promote ties between U.S. and Indonesian businesses; and foster the development of the next generation of Indonesian entrepreneurs. This approach is making a tangible difference: U.S. exports to Indonesia increased by 36 percent in 2010.
Other rapidly growing countries in the region, including India, China, and South Korea, are competing for a stake in Indonesia’s growth; the United States must be an effective advocate for U.S. companies in order to remain competitive. We have taken an approach that I call “going retail.” We actively engage government and business interests from the working level to executives to create opportunities for U.S. exports.
For example, we collaborated with Indonesian lawmakers and air carriers to introduce legislation that allowed for Export-Import Bank financing for billions of dollars worth of Boeing exports. We worked with government officials to change regulations that threatened almost $13 billion in oil and gas exploration per year. And, we helped a major U.S. company secure a huge contract in the resources sector. There are other successes. Wisconsin-based OshKosh sold fire and rescue vehicles to Indonesia’s expanding airport network. Record agricultural exports feed a growing Indonesian population. We’re helping U.S companies in other areas as well, from Hollywood films to “made-in-America” locomotives, from cutting edge pharmaceuticals to American franchises.
We complement our advocacy for U.S. companies by promoting expanded ties between U.S. and Indonesian businesses. We are increasing business-to-business relationships to promote opportunities for U.S. companies. Trade missions from the United States to Indonesia, such as a Clean Energy trade mission led by Commerce Secretary Gary Locke in 2010 and recent visits by Acting Undersecretary of Agriculture Michael Scuse and Undersecretary of Commerce Francisco Sanchez, have brought U.S. and Indonesian firms together. We have also supported 20 recent Indonesian reverse trade missions to the United States—including missions focused on broadcasting equipment, the oil and gas industry, electric power, and restaurant equipment. In response to the new Overseas Private Investment Corporation (OPIC) agreement, OPIC will host its first-ever regional investment conference in Southeast Asia in May 2011.
We are also increasing our business-to-business ties by promoting Indonesia’s next generation of entrepreneurs. On a per capita basis, Indonesia has less than one percent the number of entrepreneurs as the United States. Promoting entrepreneurship and entrepreneurs who demonstrate innovation and flexibility in a dynamic global marketplace will not only increase bilateral trade but also create allies in seeking economic reforms in Indonesia. Indonesian entrepreneurs will be natural champions to improve the ease of doing business; Indonesia ranks 121st worldwide according to a recent World Bank study of global economies. Indonesia will benefit directly from promoting entrepreneurship and this will also open more opportunities for trade with the United States.
As President Obama told the Indonesian people when he visited last November, “America has a stake in Indonesia growing and developing, with prosperity that is broadly shared among the Indonesian people—because a rising middle class here in Indonesia means new markets for our goods, just as America is a market for goods coming from Indonesia.” By using the full resources of all of the agencies of the U.S. Government, offering effective advocacy, building partnerships, and promoting entrepreneurship, we are doing our part to support the President’s National Export Initiative’s goal of doubling exports in five years that will support two million jobs in the United States.
Scot Marciel is U.S. Ambassador to Indonesia. Previously, Marciel served as Deputy Assistant Secretary for the East Asia and Pacific Bureau, which is responsible for relations with Southeast Asia, and concurrently as Ambassador for ASEAN Affairs.
