A chance to close the gap<\/p>\n
It was with confidence that the Indonesian delegation, led by
\nPresident Soeharto, attended Sunday's opening of the \"Hannover
\nMesse 1995\" by German Chancellor Helmut Kohl.<\/p>\n
Indonesia was chosen by the industrial fair organizers to be
\nGermany's \"Country Partner\" because of its successes in
\neconomics, development and technology.<\/p>\n
The confidence was further enhanced yesterday when President
\nSoeharto officially opened the two Indonesian pavilions in the
\nfair, attended among others by Chancellor Kohl. They are the
\nlargest pavilions at the fair -- occupying an area of 4,200
\nsquare meters -- and connected to the celebration of Indonesia's
\n50th anniversary of independence.<\/p>\n
The Hannover Fair is the appropriate forum to showcase
\nIndonesia's successes in industrial technology as it is the
\nworld's largest industrial fair. This is the fair where the
\nlatest developments in industrial technology from the world over
\nare exhibited every year to be examined by the scrutinizing eyes
\nof the international business community. Not surprisingly, more
\nthan 100 Indonesian private and government-owned companies and
\nagencies are participating this year, taking advantage of this
\nunique gathering of very select businesses.<\/p>\n
Obviously the showcasing is not an end in itself. It is only a
\nmeans to get to something else -- world business. Indonesian
\nexecutives participating in the fair are there not to show off
\nbut to substantiate this country's progress and successes. This
\nis a golden opportunity to demonstrate Indonesia's capabilities
\nin industrial technology, which could make the business world
\nmore competitive.<\/p>\n
It will not be an easy job, considering the fact that this
\ncountry is not yet known in the business world as a source of
\nindustrial technology. And Indonesia cannot afford to fail in its
\nefforts to promote its capabilities.<\/p>\n
Take for instance the bilateral trade between Indonesia and
\nGermany. Indonesian exports to Germany grew from US$492.9 million
\nin 1989 to $1.18 billion in 1993 (latest available figure), or an
\nincrease of 139.03 percent within four years. This figure looks
\nimpressive, especially since it consists of non-oil-and-gas
\nexports only.<\/p>\n
During the same period, however, Indonesia's imports from
\nGermany grew from $920.4 million to $2.07 billion, an increase of
\n125.16 percent, only slightly less than the export growth.
\nIndonesia's trade deficit with Germany has more than doubled,
\nfrom $427.5 million to $894.2 million. A preliminary figure for
\nthe period of January through November 1994 shows that the trade
\ngap is still widening -- to $1.05 billion in favor of Germany.<\/p>\n
Seen from a different point of view, both countries cannot yet
\nclaim each other as a substantial trade partner. Indonesia's
\nexports to Germany amounted to a mere 0.61 percent of the total
\nimports flowing into Germany during the period of January through
\nAugust last year, the latest available figure. During the same
\nperiod, German exports to Indonesia amount to only 0.57 percent
\nof that country's total exports.<\/p>\n
Another example is Indonesia's trade relations with the
\nEuropean Union. In 1989 Indonesia imported $2.57 billion worth of
\ngoods and services from the group and exported $2.34 billion
\nworth of goods and services to the nine countries of the EU at
\nthat time. In 1993, the figures grew, respectively, to $5.65
\nbillion and $5.30 billion, marking an increase in the trade
\ndeficit of 51.04 percent within four years.<\/p>\n
Those are the figures which challenge Indonesian executives in
\nHannover these next few days. We can only hope that Indonesia's
\npromotional efforts during this fair will at least result in
\nclosing the big negative gap.<\/p>",
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"sponsor": "Okusi Associates",
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