An Ideal counterpart for Indonesia<\/p>\n
Foreign trade is an important factor in Poland's economic
\ngrowth. The share of trade exchange in the GDP has grown from 35
\npercent in 1990 to 52 percent in 2000.<\/p>\n
Last year total exports were valued at US$31.7 billion and
\nimports reached $48.9 billion. This year exports have been
\ngrowing at a record pace, while the value of imports remained
\nstable.<\/p>\n
European Union countries are the main partners of Poland in
\nforeign trade. Their share in total Polish international commerce
\naccounts for more than 75 percent.<\/p>\n
Germany is the main single trade partner - it is the
\ndestination of 35 percent of Poland's overall exports and the
\nsource of 24 percent of Polish imports - followed by Italy,
\nRussia and France. The above figures prove the high quality of
\n\"Made in Poland\" products and their competitiveness.<\/p>\n
Trade with member countries of the Central European Free Trade
\nAgreement - CEFTA (Czech Republic, Slovakia, Poland, Hungary,
\nRumania, Slovenia and most recently Bulgaria) is also on the rise
\nfollowing liberalization of import duties.<\/p>\n
The commodity structure of Polish exports has undergone
\nprofound changes in recent years, marked by the shift from
\nagricultural and primary exports to labor-intensive manufactures.<\/p>\n
Nowadays, Poland sends abroad not only various engineering
\nproducts, such as motor cars, ships, boats, civil engineering
\nmachines and electrical equipment but also textiles, furniture
\n(the second largest exporter in Europe), footwear, packaging
\nmachines, as well as a rich variety of food products.<\/p>\n
The well-deserved sense of accomplishment should not prevent
\nus from recognizing many challenges that Poland must still face.
\nThose include a foreign trade imbalance and a relatively high
\nlevel of unemployment.<\/p>\n
The only way to meet the former challenge is through
\nincreasing the export capacity of the economy by securing more
\ninvestment, even better technology and higher productivity.<\/p>\n
The latter is a natural effect of the transformation from
\nlarge, ineffective state-owned enterprises to an economy run by
\nmore efficient private companies and should be resolved
\neventually when the workforce undergoes necessary retraining and
\nbecomes absorbed by the fast-developing private sector. However,
\nthe social implications of even temporary unemployment cannot be
\noverlooked.<\/p>\n
Special attention must also be given to restructuring of the
\nagricultural sector, which employs almost a quarter of the
\nworkforce while accounting for only 3 percent of GDP. Finally,
\nresources must be found to increase R&D spending to stimulate
\nproductivity and shorten the technological life cycle of
\ndomestically produced equipment.<\/p>\n
Indonesia is an important trade partner of Poland in the
\nSouth-East Asia region. The mutual trade turnover shows a steady
\ngrowth tendency.<\/p>\n
According to Polish statistical data, the value reached $208
\nmillion in 1998, $209 million in 1999, and $219 million in the
\nfollowing year.<\/p>\n
It is estimated that more than 97 percent of mutual commerce
\nexchange on the Polish side is done by private companies.<\/p>\n
The long tradition of commercial relations between the two
\ncountries saw Indonesia exporting to Poland mainly agricultural
\nproducts and raw materials, such as natural rubber, coffee, tea
\nand spices. This commodity structure has undergone profound
\nchanges in recent years. The share of chemical compounds and
\ntelecommunication equipment in total Indonesian exports to Poland
\nis rising every year. Man-made yarns, garments, cloths, footwear,
\nrattan furniture and paper products are also exported to Poland
\nin large quantities.<\/p>\n
On the other hand, Polish companies supplied to Indonesia
\nvarious kinds of machinery, civil engineering equipment,
\nchemicals, steel products, powdered milk and electrical
\napparatus. The commodity structure of Polish exports to Indonesia
\nis rather stable, while Polish purchases from Indonesia become
\nmore diversified every year.<\/p>\n
Unfortunately, a considerable part of trade transactions
\nbetween Poland and Indonesia is executed by intermediary
\ncompanies from other countries.<\/p>\n
Polish businessmen consider Indonesia an attractive market
\noffering great prospects. Producers and exporters alike are
\nlooking for new opportunities to supply mining, electrical,
\nagricultural and food processing equipment, machine tools,
\npackaging machinery, power generation equipment, various kinds of
\nchemicals, including fertilizers, herbicides and insecticides as
\nwell as technology, all of which are in demand in contemporary
\nIndonesia.<\/p>\n
High-quality \"Made in Poland\" products can still be offered at
\nvery competitive prices, thanks to a comparative advantage in
\nlabor costs.<\/p>\n
Polish business is keen to acquire new trade partners in
\nIndonesia and establish more direct relations with individual
\ncompanies.<\/p>\n
The legal framework provides a firm basis for further
\ndevelopment of trade and economic cooperation between Poland and
\nIndonesia. In 1974 the countries signed a trade agreement, in
\n1986 an agreement on the development of economic and technical
\ncooperation, and in 1992 two agreements - on avoidance of double
\ntaxation and on promotion and protection of investments.<\/p>\n
Polish customs regulations offer a considerable advantage to
\nIndonesian exporters entering the Polish market. The present
\nsystem of customs duties is in line with GATT and WTO principles,
\nand provides differentiated customs rates according to the
\ncountry of origin.<\/p>\n
Indonesian products enjoy lower tariffs under the General
\nSystem of Preferences (GSP). In fact, almost all agricultural
\ncommodities imported from Indonesia may enter the Polish market
\nwithout payment of customs duty (zero tariff). In order to be
\neligible for such preferences, commodities must be sold directly
\nto Poland.<\/p>\n
Indonesian businessmen interested in starting activities in
\nthe Polish market will find many attractive opportunities. They
\nmay easily open a representation office or find a partner to
\ncooperate with. Therefore, Poland is expecting more and more
\nIndonesian companies to visit Poland in the future, searching for
\ntrade and business opportunities.<\/p>\n
The best way to get acquainted with the Polish exports on
\noffer and also to present Indonesian products to many potential
\ncustomers, is to participate in international trade fairs and
\nexhibitions organized in Poland.<\/p>\n
Some well-known events with a long tradition include:
\n* Poznaq International Fair, Fair for Industrial Technologies and
\nInvestment Goods - the largest exhibition held annually in Poznaq
\nCity Fair Grounds in June;
\n* Poznaq Fashion Week: Featuring clothes, fabrics, jewelry,
\nfootwear and leather -- organized twice a year in March and
\nAugust;
\n* Domexpo, Trade Fair for Household Appliances: Featuring
\nhousehold appliances, lighting equipment, heating, ventilation
\nand air-conditioning, interior decoration - organized annually in
\nOctober;
\n* Polagra-Farm, Agricultural International Trade Fair: Dubbed one
\nof the biggest agricultural machinery, equipment and tools and
\nfertilizer fairs in Europe -- held every October;
\n* Polagra-Food, International Trade Fair for Food Industry:
\nExhibiting the latest machinery and equipment for food processing
\nindustry, packaging machines, farm produce and foodstuffs -- held
\nannually in September;
\n* Meble, Furniture and Furnishings Fair - organized annually in
\nMay;
\n* Drema, International Exhibition for Woodworking Machines and
\nTools: Featuring machinery and equipment for forest and sawmill
\nindustry, machines and equipment for cellulose and paper-making
\nindustry -- organized annually in May together with Meble,
\nFurniture and Furnishings Fair;
\n* Taropak, Packaging Technology and Logistics International
\nExhibition: Featuring packaging and accessories, packing machines
\nand equipment and packaging manufacturing machines -- organized
\nannually in October, together with Domexpo;
\n* Poleko, Ecological International Fair: Displaying water, soil
\nand air protection technology and equipment, control and
\nmeasurement apparatus for monitoring pollution, noise and
\nvibration, management of industrial, municipal and chemical
\nwastes, municipal transport and transport means -- organized
\nannually in November; and
\n* Baltexpo, International Shipbuilding and Maritime Equipment
\nExhibition -- held every two years in September.<\/p>\n
Acknowledging the Polish export possibilities and the great
\nsignificance of the Indonesian market, many Polish producers and
\nexporters have visited Indonesia in recent years.<\/p>\n
They participated in some important exhibitions in Jakarta,
\nfor example in the annual Mining and Electric Indonesia, Oil and
\nGas Indonesia, and Manufacturing Indonesia in 1997, 1998, 2000,
\nand every Building & Construction Indonesia event since 1996.
\nDuring some exhibitions Polish companies have presented their
\nproducts and services in national pavilions.<\/p>\n
This year alone, Poland has already participated in two
\nexhibitions in Indonesia. For the first time it has taken part in
\nan agricultural exhibition called \"Agro & Food Expo 2001\" to
\npromote Polish agricultural machinery, food processing equipment
\nand processed food products.<\/p>\n
As has already become a tradition, an offer of the Polish
\nmanufacturing sector was presented at the Manufacturing Indonesia
\n2001 exhibition.<\/p>\n
Currently, from Nov. 7 til Nov. 10, a number of examples of
\nPolish equipment and machines for the mining and energy sector
\nare being presented at Poland's National Information Stand No.
\n2530 in Hall A3 at the Mining & Electric Indonesia 2001
\nexhibition held at the Jakarta International Exhibition Center in
\nKemayoran, Central Jakarta.<\/p>\n
Polish companies offer many business and cooperation
\nopportunities for interested Indonesian partners, especially in
\nsuch areas as: the steel industry, the shipbuilding industry
\n(including construction of tankers, container ships, LPG and LNG
\nships, Ro-Ro and passenger ships, fishing boats, navy ships and
\nrescue boats), underground and open-cast mining equipment, the
\nchemical industry, the machine-tool industry, building and
\nconstruction machinery, food processing plants and environment
\nprotection equipment and know-how.<\/p>\n
Prospective purchases from Poland may also include such goods
\nas: fertilizers, pharmaceuticals, processed food, powdered milk,
\nmeasuring instruments, agricultural machinery, railway equipment,
\nenergy sector equipment and fire-fighting and rescue aircraft.<\/p>\n
In order to explore new areas of bilateral trade and to
\nstrengthen economic cooperation between Poland and Indonesia,
\nmore direct contacts between business circles are required, as
\nwell as becoming more familiar with each other's economies.<\/p>\n
Then, no doubt, mutual trade will grow to the benefit of both
\nof our distant (only geographically) countries.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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