By Joshua Kurlantzick
Jokowi’s upcoming visit to Washington provides an opportunity to boost the relationship.
Two weeks ago, a senior aide to Indonesian President Joko “Jokowi” Widodo confirmed that the Indonesian leader plans to make his first visit to Washington as president in June. Thus far, despite hopes in Washington that Jokowi’s term as president might usher in closer ties to the United States, the U.S.-Indonesia relationship has remained roughly where it was before Jokowi took office. The bilateral relationship is generally warmer than it was in the 1990s and early 2000s, but the two countries’ strategic, economic, and cultural relations still lag far behind those the United States enjoys with many other partners in Southeast Asia. Given Indonesia’s massive size, and the plans for a new U.S.-Indonesia relationship—the U.S.-Indonesia Comprehensive Partnership is now five years old—the lukewarm economic and strategic ties could be seen as a disappointment.
Jokowi’s economic and strategic policies have received a mixed response in Washington, and from American companies. He seems to be continuing the economic nationalism that prevailed in the late days of the Susilo Bambang Yudhoyono (SBY) administration. However, Jokowi’s long-term economic policies still remain unclear. He has used several foreign trips to aggressively woo investment in Indonesia, while simultaneously using speeches to call for a “project-based” approach to foreign investment. A project-based approach seems reasonable on its face but the idea has scared many foreign investors into believing that the government will scrutinize potential investment excessively, in a country where red tape already slows investment possibilities. Jokowi also has decided to favor many unwieldy state enterprises in his plan to expand Indonesia’s physical infrastructure.
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