BALI, RAKYAT NEWS – At the 12th US-Indonesia Investment Summit in Bali, Nezar Patria, Indonesia’s Deputy Minister for Communications and Digital Affairs (Komdigi), urged the United States to ramp up investments in Indonesia’s digital sector. His call comes as the Indonesian government aims to strengthen its partnership with the U.S. and foster more collaboration in business and technology.

Nezar emphasized that the collaboration should focus on increasing investments and driving innovation in Indonesia’s digital economy.

In his remarks, Nezar highlighted the crucial role that global tech companies play in transforming Indonesia’s digital landscape. He stated that both investment and the transfer of technological knowledge were essential to achieving the country’s digital transformation goals. By adopting advanced technologies, Indonesia can create value and jobs, boosting its economic potential.

Nezar underscored that digital transformation is vital for achieving Indonesia’s ambitious target of an 8% economic growth rate, which is part of President Prabowo Subianto’s vision for the nation’s future. He outlined the role of the Ministry of Communications and Digital Affairs as a facilitator, enabler, and regulator in strengthening the country’s digital ecosystem, ensuring that it contributes to sustainable economic growth.

The 12th US-Indonesia Investment Summit serves as a strategic platform for showcasing key initiatives from Indonesia’s government. The goal is to attract foreign investment and achieve the vision of a prosperous “Golden Indonesia” by 2045. The summit brought together stakeholders to discuss how both countries can enhance their economic and technological ties.

A recent report by the American Chamber of Commerce in Indonesia (AmCham) and the US Chamber of Commerce revealed that U.S. investments in Indonesia amounted to $67 billion (IDR 1,066 trillion) from 2014 to 2023. This investment generated an economic impact of $130 billion (IDR 2,070 trillion) during this period, underscoring the growing importance of U.S. capital in Indonesia’s economy.

Historically, U.S. investments in Indonesia focused heavily on the mining and energy sectors. However, in the last decade, there has been a noticeable shift. U.S. investments have increasingly moved towards the digital economy, with significant interest in sectors like technology, data centers, digital platforms, pharmaceuticals, medical devices, and online services. This shift is helping to support Indonesia’s ongoing economic transformation.

Nezar noted that as Indonesia continues to develop its digital economy, it is crucial to prioritize the growth of local businesses, particularly those involved in technology and digital services. This transition marks a new chapter in the country’s economic strategy, aiming for a future where innovation drives economic progress.

The Indonesian government’s push for stronger ties with the United States in the digital realm reflects broader trends in global economic development. As countries seek to navigate the digital age, fostering international partnerships and encouraging innovation will be key to achieving long-term growth and stability in an increasingly interconnected world. (Uki Ruknuddin)

 

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