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Indonesia is open for business - at least on the surface

Indonesian President Prabowo Subianto took to the stage at the headquarters of the US Chamber of Commerce in Washington last week. His message to American executives focused on how Indonesia is open for business.
Indonesia is open for business - at least on the surface
February 23, 2026

Indonesian President Prabowo Subianto took to the stage at the headquarters of the US Chamber of Commerce in Washington last week. His message to American executives focused on how Indonesia is open for business, as it intends to remain stable, predictable, and strategically indispensable. As he was speaking before members of the US business community, including representatives from the US-ASEAN Business Council and US-Indonesia Society, Prabowo framed Indonesia not only as an emerging market but as a long-term partner for the global leaders.

Anchored in political stability, the rule of law, and disciplined fiscal management, Prabowo addressed the attendants. Antara News reported in depth how the visit marked more than ceremonial diplomacy. It was treading the road of calculated economic and geopolitical pitch at a time of intensifying global competition for capital, supply chains, and strategic minerals.

Selling stability

Prabowo’s central thesis stood on one premise: investors seek certainty. “No one will invest in chaos,” he told the audience, underscoring that Indonesia’s relatively political calmness and consistent economic growth above 5% offer a competitive edge in a volatile world.

His articulation of Indonesia’s “free and active” foreign policy reinforced this stability narrative. By emphasising respect for all major powers and reiterating the proverb “1,000 friends are too few, one enemy too many,” Prabowo signalled that Indonesia will not be aligned with binary alignments. For American investors wary of geopolitical fragmentation, the message was clear: Indonesia will not force partners into ideological camps.

In a domestic setting, Prabowo extended this philosophy to governance. Political competition, as he argued, must give way to collaboration and compromise among elites. Stability, in the President’s framing, is not accidental; it is engineered through consensus and institutional continuity.

Anti-corruption and fiscal discipline

Beyond rhetoric, Prabowo also sought to anchor investor confidence in structural commitments. Legal certainty, anti-corruption enforcement, and clean governance are stressed, with actions such as strengthening law enforcement against corruption and cartels, presenting these efforts as prerequisites for sustained capital inflows.

Foreign direct investment figures got behind his case. Indonesia attracted approximately $53bn in foreign investment last year, which he argues is a tangible signal of international confidence in the country’s macroeconomic fundamentals and reform trajectory.

Another equally important point was fiscal prudence. Prabowo highlighted disciplined state finances as a pillar of resilience, signalling continuity with Indonesia’s traditionally cautious budget management. For institutional investors and sovereign funds, this reassurance matters as much as growth potential.

Danantara and the mineral moment

A notable feature of the US pitch pointed to Indonesia’s introduction of Danantara, the sovereign wealth vehicle that is positioned as a strategic co-investment platform. By presenting Danantara as a professionalised, globally oriented investment partner, Prabowo sought to lower perceived barriers to entry for US capital.

Prabowo also emphasised Indonesia’s reserves of critical minerals, which include rare earth elements essential to electric vehicles, renewable energy technologies, and advanced manufacturing. The move proved timely, at a moment when supply chain security has become a strategic imperative in the US. Indonesia’s assured resource base gives it leverage.

He connected this to 18 downstream industrialisation projects that are currently underway, reinforcing Indonesia's strategy to move beyond raw material exports toward value-added processing. The message that Indonesia sent to the US was clear: participate not only in extraction, but in the full industrial ecosystem.

This strategy, aptly named “minerals-for-tech”, leverages Indonesia’s dominant position in nickel and its significant potential for rare earth elements (REEs) to secure a seat at the table of global high-tech manufacturing, Indonesia Business Post reports. Rather than exporting raw materials, Indonesia is insisting on value-added production, smelting, refining, battery manufacturing, and advanced materials processing, all in the direction of downstreaming.

The promise of infrastructure, connectivity, and the energy transition

The president did, however, acknowledge Indonesia’s remaining bottlenecks, especially its logistics inefficiencies. Indonesia also outlined plans for expanded ports, airports, and toll roads. Infrastructure, as Prabowo argued, is foundational to competitiveness.

Energy transition also formed a pillar of Prabowo’s pitch. Indonesia stays committed to renewable energy development, electric vehicle production, and green industry growth. Yet Prabowo characterised the approach as “pragmatic”, walking on a beam between climate ambitions and economic realities.

One of the examples of the country’s effort on its green economy is its latest Electricity Supply Business Plan (RUPTL 2025-2035). The plan sets an ambitious target of 50 GW of renewable energy capacity over the next decade, backed by a projected investment of about IDR1,650 trillion ($98bn), Indonesia Business Post reports. This covers sources like hydro, solar, and other renewables

Another example was Prabowo’s late 2025 government actions, which have included launching a $5.9bn EV battery ecosystem project to strengthen domestic EV supply chains. This signals a push toward green industrialisation and reduced fossil-fuel dependence.

This calibrated stance may resonate with US investors seeking scale in Southeast Asia’s energy transformation without abrupt policy swings. For Indonesia to follow through with the overinflated promise made is yet to be seen.

The exercise of soft power and security diplomacy

Prabowo’s US visit extended beyond economic outreach toward a political one. Previously reported to be a willing supporter of Trump’s Gaza Peace Council, Prabowo attended this inaugural meeting hosted by US President Donald Trump as well.

This move secured Indonesia a public shoutout from Trump, who publicly praised Indonesia for committing personnel to help maintain a ceasefire in Gaza. Trump continued on describing Prabowo as “tough” and “smart.” The endorsement, delivered in front of assembled world leaders, elevated Indonesia’s profile as a contributor to global peacekeeping efforts.

Despite backlash from many Indonesians at home, Indonesia tries to reinforce a broader narrative: Indonesia is willing to shoulder international responsibilities, and is no longer just a passive economic actor. For the US, the political alignment strengthens bilateral trust beyond transactional trade discussions, something that Prabowo has made a big deal about.

Prabowo then referenced a forthcoming reciprocal trade agreement (Agreement on Reciprocal Trade/ART) to showcase progress in formalising economic ties. As for now, the details remain limited, but the prospect of a structured trade framework complements the broader investment push.

The optics of the visit were equally significant. Prabowo invited senior economic ministers and business leaders, including figures from Indonesia’s energy and mining sectors to join him. With this, the president tried to present a unified front. The delegation underscored the need for coordination between government and industry in pursuing strategic partnerships.

A balancing act in a fragmented world

Ultimately, Prabowo’s US quest reflects a desperate effort to show the capability to achieve economic balance. As Indonesia seeks deeper economic integration with the United States, it struggles to maintain strategic autonomy. The country wants US capital, technology, and industrial collaboration, but without entanglement in a great-power rivalry.

On the other hand, the timing is ideal. As global supply chains diversify and companies adopt “China-plus-one” strategies, Indonesia emerges to offer scale, resources, and demographic momentum. Yet competition from regional peers such as Vietnam, Malaysia, and India remains intense. The Southeast Asians and South Asian countries are equally aggressive in courting US investment.

Prabowo’s pitch, therefore, hinges on credibility. Sustainable stability, with an ambitious promise of anti-corruption drives, must deliver measurable outcomes. Industrial policies need to follow suit, as they must translate into bankable projects.

The US stop was not just a diplomatic ploy; it was a statement of intent. Prabowo positioned Indonesia as stable but ambitious, pragmatic yet forward-looking, resource-rich yet reform-minded, despite not mirroring the branding on the field home.

The combination of macroeconomic resilience, mineral endowment, infrastructure expansion, and a strategically balanced foreign policy is carefully woven as the backbone of the president’s investment narrative. Indonesia under Prabowo seeks not to be merely an investment destination, but a strategic partner in a rapidly reordering global economy.

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