Indonesian President Prabowo Subianto is currently visiting several countries, such as China, the United States, Peru, Brazil, England, and the United Arab Emirates (UAE). Prabowo’s overseas visit also resulted in several agreements in the economic sector. So, what are the results of Prabowo’s visit? The following is a list of the results of Prabowo’s visit to China, the US, and Peru.
- China
In China, Prabowo’s visit resulted in two quite important agreements, such as an investment worth US$ 10.07 billion or equivalent to IDR 157 trillion and Chinese financial assistance for the Free Nutritious Meals (MBG) program. The support is stated in an MoU entitled Food Supplementation and School Feeding Programme in Indonesia. However, the government did not specify how much funding China provided and the form of support.
Prabowo brought home an investment of US$ 10.07 billion or around IDR 160 trillion (assuming an exchange rate of IDR 15,900) from his visit to China. The investment is stated in a memorandum of understanding (MoU) between Indonesian and Chinese companies.
The cooperation was initiated by the Indonesian Chamber of Commerce and Industry (Kadin) and the China Committee (KIKT). The cooperation involves 20 companies from the two countries in the fields of manufacturing, health, downstreaming, food security, and finance.
2. United States
In the US, Prabowo’s visit resulted in three important agreements, namely the US commitment to support Indonesian food security, Acceleration of clean energy transition through the Just Energy Transition Partnership (JETP), and development of the Mineral Supply Chain.
The US is committed to supporting Indonesian food security through sustainable agriculture. This commitment was agreed upon in Prabowo’s meeting with US President Joe Biden. Not only that, the US-RI are also committed to strengthening Indonesia’s food security through promoting sustainable management practices for fisheries and aquaculture, as well as increasing the effectiveness of management of Indonesia’s marine protected areas in line with applicable laws.
In addition, Prabowo’s visit to Uncle Sam’s country also resulted in a commitment from Indonesia and the US to expand collaboration to accelerate the clean energy transition, including through JETP. JETP is a promise from developed countries, aka the G7, to fund Indonesia’s energy transition. JETP funding of US$ 20 billion or equivalent to IDR 318 trillion was agreed upon at the G20 Summit in Bali in November 2022. Unfortunately, the funding was not in the form of a grant, but rather a loan, aka debt.
3. Peru
The two countries are committed to finalizing the Comprehensive Economic Partnership Agreement (CEPA) within the next six months. Prabowo is optimistic that the agreement can be signed during the visit of Peruvian President Dina Boluarte to Indonesia with her delegation.
CEPA is a comprehensive economic cooperation agreement that not only regulates tariff reductions, but also concerns market access, capacity building and trade facilitation, and investment. The objectives of each arrangement are to eliminate tariffs and address non-tariff barriers, maintain market access and ensure conducive conditions for service providers, and protect and encourage investment.
4. Brazil
Indonesian and Brazilian business actors have agreed to cooperate in various sectors worth US$ 2.8 billion or around IDR 44.4 trillion. Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the signing of the Memorandum of Understanding between Indonesian and Brazilian business actors was carried out at the Indonesia-Brazil Business Forum initiated by the Indonesian Chamber of Commerce and Industry, the Indonesian Ministry of Foreign Affairs, and the Indonesian Embassy in Brazil. The sectors included in the cooperation include the financial sector, digital technology, mining, energy, livestock, and the aerospace industry.
5. England
In England, Prabowo managed to bring in US$ 8.5 billion or around IDR 135.15 trillion worth of investment. The investment commitment was stated by a number of British company leaders when they met Prabowo at the CEO Roundtable Forum in London. They intend to invest in several areas, such as energy transition, infrastructure, education, and health.
November 22, 2024, CNBC Indonesia
(https://www.cnbcindonesia.com/research/20241122141243-128-590351/hasil-kunjungan-prabowo-ke-5-negara-bawa-investasi-triliunan-rupiah)