By: Farhan Farisan )*
The government is intensifying economic diplomacy efforts by encouraging strategic investment in the oil and gas (oil and gas) and information technology (IT) sectors to the United States. This step is a key strategy to expand the reach of Indonesian SOE businesses while strengthening bilateral economic relations amid global geopolitical dynamics, including the high tariff policy of US President Donald Trump.
Deputy Minister of Investment and Downstream, Todotua Pasaribu, said that SOE companies, especially those engaged in the oil and gas and IT sectors, already have a track record of international expansion. He emphasized that the push to invest in the US aims to take advantage of the great opportunities in the global market and strengthen Indonesia’s strategic position in the world’s energy and technology supply chain.
For the oil and gas sector, SOE investments such as PT Pertamina through its subsidiaries will be directed at acquiring strategic assets in the upstream to midstream sectors. This allows Indonesia to secure long-term energy supplies while also obtaining technology transfer from developed countries.
According to Todotua, this investment approach is not just a business expansion, but also part of the US’s trade tariff negotiation strategy against Indonesia, which currently stands at 32%. The government hopes that the presence of state-owned companies in the US market will be a bargaining chip in the negotiation forum to be held in Washington DC on April 16-23, 2025.
In the context of information technology, the government is also encouraging state-owned companies in the IT sector to develop investments that focus on research and development (R&D), especially in the field of artificial intelligence (AI). Thus, Indonesia can accelerate its technological leap through collaboration and technology development with partners in the US.
Todotua added that the investment made does not have to be directly by state-owned companies, but can be through a project investment scheme or strategic partnership. This mechanism will reduce the burden of single financing and open up opportunities for synergy with local and international companies.
State-owned companies will invest through the Danantara Investment Management Agency (BPI), which is considered to have high flexibility in managing investment allocations both domestically and abroad. This institutional structure will provide flexibility in managing investment funds and risks.
Although investment in the US is relatively large, the government believes that the potential for long-term returns from the oil and gas and technology sectors is very promising. Moreover, the US has large energy reserves and a growing technology ecosystem, making it a strategic market for Indonesia’s expansion.
Pertamina’s VP of Corporate Communication, Fadjar Djoko Santoso, said that Pertamina is ready to support the direction of government policy and is open to investing or collaborating with strategic partners in the US. He emphasized that the upstream oil and gas sector is a very potential area to be developed.
This potential cooperation also includes the possibility of Pertamina’s entry into large energy projects in the US, one of which is the Pikka project in Alaska which is being worked on by Santos and Repsol. This project is known to have large oil reserve prospects and has been the focus of PT Pertamina Hulu Energi (PHE).
Acting Director General of Oil and Gas, Tri Winarno, said that the upstream sector is indeed the focus of investment. However, he emphasized that the final investment decision is still in the negotiation stage and is being adjusted to Pertamina’s financial capacity.
Tri also said that although investment in projects like Pikka is very attractive, every decision will be made with comprehensive consideration, including economic aspects and political risks that may arise. The government does not want to be reckless in making this strategic decision.
This decision is also part of the government’s long-term steps in preparing for the energy transition. By controlling oil and gas assets abroad, Indonesia can get income as well as technological experience that is useful for domestic energy development.
On the other hand, encouraging investment in the IT sector will provide great benefits in accelerating the national digital transformation. By conducting R&D with US companies, Indonesia can create more relevant technology to be applied in the public and industrial sectors.
The government hopes that this investment will not only bring financial benefits, but also strengthen strategic relations with the United States. Indonesia’s presence in the US market also reflects the increasingly solid national economic confidence.
This step is also a proactive response to global challenges such as trade wars and protectionism. By expanding overseas, Indonesian SOEsdemonstrate its capacity to compete globally and create national added value.
This expansion is expected to be an example of a future BUMN investment model, namely not only focusing on the domestic market, but also being aggressive in the international market. The government wants to create a BUMN business ecosystem that is resilient, adaptive, and proactive towards global opportunities.
In closing, investment in the oil and gas and IT sectors to the US is part of a more dynamic and strategic foreign economic policy. With a strong foundation and government support, Indonesia is ready to expand its influence in the global economic network.
)* The author is a Bandung student living in Jakarta