Image source: President Secretariat of the Republic of Indonesia

Indonesian President Joko Widodo met with US President Joe Biden at the White House in Washington, D.C., on Monday, November 13, 2023. During the meeting, both leaders agreed to elevate the countries' bilateral relationship from a Strategic Partnership to a Comprehensive Strategic Partnership (CSP). 

The meeting, which took place as the leaders prepared for the Asia-Pacific Economic Cooperation summit in San Francisco this week, involved amicable discussions on areas where both countries could strengthen cooperation.  

The US is particularly keen on diversifying the supply chain of its semiconductor industry, with Indonesia being regarded as a potential partner. The US has already inked a similar deal with Vietnam earlier this year. 

Meanwhile, in line with President Widodo’s ambition to develop an Electric Vehicle (EV) production ecosystem, the nations agreed to move forward with a possible mineral collaboration focused on nickel – a critical component of EV batteries, with Indonesia being the world’s largest supplier.  

“The US is one of the most important partners for Indonesia. We must give real meaning to the partnership. For us, economic cooperation is a priority, including supply chain issues,” President Widodo said, as quoted by the Jakarta Post. 

An estimated US$25.85 billion worth of commitment was achieved as a result of the visit, including in the building of solar modules and panels, petrochemical refineries, carbon capture storage, nickel processing for electric vehicle batteries, the funding of the US International Development Finance Corporation for Indonesian private banks and the US Agency for International Development’s for Indonesia’s waste management system, as well as decarbonization investments by ExxonMobil.  

The commitment spans 22 projects covering economic cooperation, defense cooperation, energy and climate cooperation, and people-to-people collaboration.  

In the fields of sustainable energy and minerals, the CSP opens the door for Indonesia to work with the US to establish a global semiconductor value chain, especially as Indonesia has been selected as one of the partners of the US-led International Technology Security and Innovation Fund.  

There are also plans for US trade delegations representing semiconductor companies to visit Indonesia to collaborate with relevant industry associations. 

In reference to security cooperation, according to the White House, the US and Indonesia have decided to expand their collaboration in areas including cyberspace, cybersecurity, joint exercises, and nuclear threats. 

“This will mark a new era in the relationships between the United States and Indonesia across the board, affecting everything. I am of the view that our partnership is stronger than it has ever been,” President Biden said. 

Jakarta and Washington officially established diplomatic ties on December 28, 1949. Next year, both countries will celebrate 75 years of diplomatic relations.  

With the CSP, Indonesia and the US formally raised their diplomatic ties to the highest level. In a joint statement after the meeting, both leaders expressed their will for both countries to "remain deep friends” in the future.