United States-Indonesia Relations
Since Secretary Clinton visited Indonesia in 2009 on her first international trip as Secretary of State, and two years after the launch of the Comprehensive Partnership, United States-Indonesia relations have never been stronger. President Obama's and President Yudhoyono's commitment to elevate bilateral relations by intensifying consultations and developing habits of cooperation laid the foundation for a strategically vital partnership between the world's second and third largest democracies. The U.S. Secretary of State and the Indonesian Foreign Minister co-chair a Joint Commission to ensure continued momentum to sustain the partnership. Some notable recent achievements include:
Regional and Global Cooperation
- The U.S. and Indonesia cooperate closely in the region’s multilateral bodies, including the ASEAN Regional Forum (ARF) and East Asia Summit (EAS). The U.S. decision to join the EAS, and President Obama’s participation, underscores U.S. commitment to deepening engagement in the Asia-Pacific region.
- Officials from both countries consult regularly on issues such as humanitarian assistance and disaster relief, climate change, and the spread of communicable diseases.
- Through increased high-level visits, the bilateral relationship continues to grow. Secretary Clinton attended the ARF in Indonesia in July 2011. President Obama and Secretary Clinton traveled to Bali for the third U.S.-ASEAN Leaders Meeting in November 2011. Since 2010, we have taken turns hosting the Joint Commission Meetings.
- The U.S. continues to consult closely with Indonesia to support and strengthen the three pillars of the Nuclear Nonproliferation Treaty—nonproliferation, peaceful uses of nuclear energy, and disarmament. We have worked with Indonesia to encourage all ASEAN countries to conclude Additional Protocols to their safeguards agreements with the International Atomic Energy Agency (IAEA), and we welcome Indonesia’s partnership in the IAEA’s Peaceful Uses Initiative.
- Under Indonesia’s ASEAN 2011 chairmanship, Indonesia worked closely with the United States and the other nuclear weapon states (P5) to resolve outstanding issues that had prevented P5 signature of the Protocol to the Southeast Asia Nuclear-Weapon-Free Zone (SEANWFZ) Treaty. Successful negotiations concluded at the November 2011 EAS.
- As host of the Bali Democracy Forum, Indonesia is a leader in advancing democracy in the Asia-Pacific region. The U.S. attends the annual forum as an observer.
Economy, Trade and Investment
- Indonesia will be the host for the Asia-Pacific Economic Cooperation (APEC) in 2013. The U.S. is committed to supporting Indonesia's host year, deepening our cooperation within APEC, and building on the strong momentum from the U.S. host year in 2011.
- Since 2009, U.S. exports of goods to Indonesia have increased from $5.1 billion to $7.4 billion in 2011, and imports of goods have increased from $12.9 billion to $19.1 billion. United States foreign direct investment (FDI) in Indonesia expanded to $1.5 billion in 2011, making the United States the third largest contributor.
- The United States Agency for International Development’s (USAID) Development Credit Authority loan guarantees helped spur employment by financing approximately $20 million in loans and increasing access to financial services for over 26,000 Indonesians.
- The U.S.-Indonesia Infrastructure Memorandum of Understanding, signed on August 8, 2012, will support greater bilateral cooperation on infrastructure projects.
- The number of U.S. visas issued to Indonesian students has risen by 25% over the past two years. Both governments are committed to continuing to increase the number of students studying in one another’s country in the next five years.
- Under the Higher Education Partnership, the U.S. will invest over $165 million from 2010-2014 to promote educational cooperation with Indonesia. This includes support for expanded academic exchanges, including the new Fulbright Indonesia Research, Science and Technology (FIRST) program for U.S. and Indonesian students and scholars, the Community College Initiative for Indonesian students and faculty, support for Americans studying languages in Indonesia, and English Language programs for Indonesians. Support for capacity building efforts, such as USAID’s Higher Education Leadership and Management program and several dozen university partnerships are also included.
- USAID’s graduate degree program provides $20 million in scholarship funding for Indonesian students to study in the United States and Indonesia.
- An expansion of USAID’s basic education program will provide a total of $83 million for teacher training and development of strategies for early grade reading programs.
- The Millennium Challenge Corporation (MCC) compact for $600 million, signed in November 2011, provides investments in renewable energy, maternal and child nutrition, and support for Indonesia's efforts to modernize its public procurement system.
- In 2010, the United States Peace Corps program in Indonesia reopened and now has 63 volunteers in East Java and three in West Java. Next year, the Peace Corps anticipates 40 new volunteer placements in East Java and 20 in West Java.
- USAID’s Mobile Money partnership will soon provide banking services via cell phones and other mobile devices to rural populations.
- OPIC is launching a second $20 million credit facility to support microfinance institutions.
- The Indonesian Chamber of Commerce and Industry (KADIN) and USAID have formed a partnership to develop the capacity of the private sector to improve agricultural policy and productivity by establishing an agricultural research foundation.
Climate, Environment and Energy
- MCC’s “Green Prosperity” initiative will leverage private sector investments in support of Indonesia’s green growth strategy.
- USAID’s $40 million Indonesia Forestry and Climate Support Program is working across eight landscapes to pursue a 50% reduction in the rate of forest degradation and loss; improved management of 3.5 million hectares of forest; a 50% reduction in project site green house gas emissions; and a 20% increase in sustainable financial resources.
- Through a grant to the U.S. Forest Service, the Department of State is supporting development of the Indonesian Climate Change Center, and the work it is doing to map and slow the loss of peatlands, a key cause of greenhouse gas emissions in Indonesia.
- U.S. Trade and Development Agency (USTDA) will sponsor a study mission to the U.S. in October 2012. We hope to share U.S.’s best practices in unconventional gas development and to discuss policy and investment in Indonesia’s energy sector.
- Through the $16 million Indonesia Clean Energy Development project, USAID is assisting Indonesia to expand its domestic energy supply and fulfill its commitment to reduce greenhouse gas emissions in the energy and transportation sectors.
Defense and Security
- Defense trade is an increasingly important component of the overall bilateral relationship. The U.S. is granting 30 Excess Defense Articles F-16s to Indonesia, with Indonesia refurbishing them with national funds. This is a landmark case of defense cooperation.
- The U.S. is procuring $2.2 million worth of heavy construction equipment, to enhance the training capacity at the newly-formed Indonesian Peacekeeping Center.
- A humanitarian relief joint exercise with the U.S., Indonesia and other countries in the region is scheduled to take place in November. This exercise will add to the more than 170 bilateral mil-to-mil engagements each year between the U.S. and Indonesia.
- U.S. Foreign Military Financing (FMF) and International Military Education and Training (IMET) funds are used to foster professionalism and technical expertise in the Indonesian military, while expanding overall operational capability.
Rule of Law and Law Enforcement
- With funding from the Department of State, the U.S. Department of Justice’s International Criminal Investigative Training Assistance Program (ICITAP) provides law enforcement assistance, capacity, and competency development in combating transnational organized crime, protecting natural resources, forensics, as well as maritime, port and border security.
- The U.S. Department of Justice’s Office of Overseas Prosecutorial Development Assistance and Training (OPDAT), which also receives Department of State funds, provides rule of law assistance, such as training to the special prosecutor task force on counterterrorism, supports a court security program, and advises on asset forfeiture, anti-money laundering, and terrorist finance legislation.
- The Department of State’s Export Control and Related Border Security Program provides training on maritime law enforcement, weapons of mass destruction, and interdiction.
- USAID enhances rule of law by strengthening the Indonesian Supreme Court, improving legal education, and enhancing the ability of local NGOs to advocate for human rights.
- The FBI Legal Attaché conducts joint, parallel investigations with the Indonesian Corruption Eradication Commission (KPK).
- In 2012 the Department of State’s Antiterrorism Assistance program provided training and equipment to 545 Indonesian police officers. Course graduates are now training their colleagues in counterterrorism skills, such as crisis response, K-9s, and blast investigation.