Coordinating Minister for Economic Affairs Airlangga Hartarto met with U.S. Under Secretary for Economic Growth Jose Fernandez on Monday (15/07) to discuss collaboration in various sectors, including the semiconductor ecosystem, renewable energy, agriculture, and potential cooperation areas. Fernandez expressed interest in agricultural biotechnology, and Airlangga noted that Indonesia is open to biotechnology cooperation with the U.S. in commodities like rice, corn, and sugarcane. Existing collaborations include research between Indonesian universities, such as Bogor Agricultural Institute (IPB), and U.S. universities. The Indonesian government is also developing laboratories for these commodities and promoting bio-ethanol as an eco-friendly fuel. Food estates are being developed to ensure food security across Indonesia. Airlangga highlighted the potential of Small Modular Reactor (SMR) technology for electricity generation, considering Indonesia's vast archipelago. Fernandez assured U.S. support for SMR use and encouraged private sector involvement in developing and conducting feasibility studies for reactors in Indonesia. Several nuclear reactor operators have shown interest in collaborating with Indonesia, which already has nuclear laboratories for research and development.
The Indonesian government has established a Task Force for Semiconductor Ecosystem Development through a decree. This task force collaborates with the OECD and the U.S. Department of State to study Indonesia's semiconductor ecosystem. Indonesia's membership in the OECD is expected to aid semiconductor ecosystem development and strengthen the global semiconductor supply chain through the International Technology Security and Innovation (ITSI) Fund. Additionally, Indonesia partners with the University of Arizona for semiconductor human resource development. Indonesia appreciates U.S. leadership in the Indo-Pacific Economic Framework for Prosperity (IPEF) and is committed to negotiating all pillars within the IPEF, promoting flexibility in agreement finalization, and signing agreements on Pillars II, III, IV, and the Overarching Agreement. Indonesia is currently ratifying these agreements, with several IPEF Cooperative Work Programs initiated for long-term investment opportunities and partnerships to harness Indonesia's renewable energy potential. Airlangga emphasized Indonesia's commitment to priority programs, particularly regarding OECD accession and the energy transition towards Net Zero Emission (NZE).
