Posted at 11:00 AM
Partnerships between firms will help strengthen the U.S.-Indonesia bilateral commercial relationship
U.S. Secretary of Commerce Penny Pritzker and Republic of Indonesia Minister of Industry M.S. Hidayat announced today three new clean-energy agreements between U.S. and Indonesian firms worth nearly $360 million in business for the US and Indonesia. The agreements to develop environmentally-friendly technology were signed on the heels of the Asia Pacific Economic Cooperation (APEC) Summit 2013 in Bali, which brings together government and business leaders to advance economic growth, cooperation, trade and investment. Secretary Pritzker helped lead the U.S. delegation to the APEC Summit.
“President Obama has made it very clear that the United States is deeply committed to strengthening our commercial and economic ties in the Asia-Pacific. Part of increasing our engagement in the region will be achieved as U.S. and Asian businesses work together on projects that benefit both of our economies and create jobs,” said U.S. Secretary of Commerce Penny Pritzker. “Joint projects like these represent a clear win-win for our bilateral commercial relationship with Indonesia, and demonstrate the opportunities that exist in the world’s fastest-growing region for U.S. companies to not only sell their goods and services but share their expertise and drive economic growth in high-priority areas like clean energy.”
As the worlds’ second and third-largest democracies, and third and fourth most populous nations, the U.S. and Indonesian have continuously sought to emphasize their natural linkages through both commercial and diplomatic engagement. Bilateral trade between the U.S. and Indonesia has increased steadily over the past decade, thanks in large part to Indonesia’s strong economic growth and impressive domestic consumer economy.
While two-way trade already exceeds $26 billion, leaders on both sides have engaged on multiple levels to expand bilateral trade and investment.
The clean energy investments include the following:
- The purchase of revolutionary zinc-air battery technology from Fluidic Energy, which entered into a new contract for $79 million with Indosat;
- An agreement between Indonesian Airports company AP 1 and a joint-venture between SunEdison and Sintesa Group to supply 15MW of solar generation at the Bali International Airport; and
- A binding cooperation agreement between Ormat Technologies and PT Geo Pacific for majority stake in the $250 million Hu’u Dompu Geothermal power generation project.
The investments are among the many projects that support the U.S. Indonesia Comprehensive Partnership, an agreement between Presidents Obama and Yudhoyono to deepen and strengthen ties between the two nations. They also support the goals of the U.S.-Asia Pacific Comprehensive Energy Partnership (USACEP), which was launched by President Obama and the leaders of Indonesia and Brunei to improve the region's ability to provide energy for its citizens. The Partnership aims to drive investment and facilitate progress through four key regional priorities: encouraging the use of renewables and cleaner energy, developing cross-border connectivity, promoting the greater use of natural gas, and addressing rural electrification issues and energy efficiency.